Which condition is NOT necessary for price discrimination to exist?
A) The demand curve must be downward sloping for the firm.
B) The buyers must have different elasticities of demand.
C) The firm must set different prices to reflect marginal cost.
D) Resale of the product or service must be difficult.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different consumers for the same product, not necessarily reflecting marginal cost differences. The key is varying willingness to pay, not cost differences.

Which Condition Is NOT Necessary for Price Discrimination to Exist