Price discrimination is not possible if a firm:
A)is regulated by the government
B)operates in a competitive market
C)has perfect information about consumer demand
D)faces a downward-sloping demand curve

Question

Quizplus · Accepted Answer

Price discrimination requires the ability to distinguish between different groups of consumers and charge them different prices based on their willingness to pay. In a competitive market, firms do not have this ability as consumers can easily switch to another firm offering a lower price. Therefore, price discrimination is not possible in a competitive market.

Price Discrimination Is Not Possible If a Firm