For a monopolist to practice price discrimination, one necessary condition is that the product offered for sale must be:
A) high quality.
B) expensive.
C) cheap.
D) impossible or difficult to resell.

Question

Quizplus · Accepted Answer

The product offered for sale must be impossible or difficult to resell in order for the monopolist to effectively practice price discrimination. This is because if the product can easily be resold, then customers who purchase the product at a discounted price can simply resell it to buyers who are willing to pay a higher price, thus undermining the monopolist's ability to charge different prices to different customers. Therefore, the monopolist needs to ensure that the product is not easily resellable in order to effectively practice price discrimination.

For a Monopolist to Practice Price Discrimination, One Necessary Condition