To be able to price discriminate, a firm must:

Question

Quizplus · Accepted Answer

Price discrimination requires a firm to have some degree of market power or price-setting ability, allowing it to charge different prices to different customers for the same product or service. This is not possible in perfectly competitive markets where firms are price takers, nor does it involve charging everyone the same price. Being a monopoly is not a necessary condition for price discrimination, as firms in other market structures with less than full monopoly power can also engage in this practice if they meet the condition of having some price-setting ability.

To Be Able to Price Discriminate, a Firm Must