For a firm to price discriminate, it must
A) sell to customers with identical price elasticities of demand.
B) produce a product or service that has a close substitute provided by other firms.
C) be able to prevent the resale of its product.
D) have different marginal costs for each of the different customers.

Question

Quizplus · Accepted Answer

For a firm to effectively price discriminate, it must be able to prevent the resale of its product among consumers. This ensures that consumers who are charged a lower price cannot resell the product to those who are charged a higher price, undermining the firm's pricing strategy.

For a Firm to Price Discriminate, It Must