For price discrimination to be feasible it is necessary for the firm to:
A)have a flexible wage policy
B)have perfect information about consumer demand
C)have some market power
D)have exclusive control over a natural resource

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of consumers based on their willingness to pay. Therefore, it requires the firm to have some degree of market power or the ability to influence the market price. Having perfect information about consumer demand may help in implementing price discrimination, but it is not a necessary condition. Flexible wage policy and exclusive control over a natural resource are not related to the feasibility of price discrimination.

For Price Discrimination to Be Feasible It Is Necessary for the Firm