All of these conditions are required for successful price discrimination EXCEPT that sellers must
A) have some market power.
B) be able to separate the market into different consumer groups based on their elasticities of demand.
C) be in an industry with no barriers to entry.
D) be able to prevent arbitrage.

Question

Quizplus · Accepted Answer

Price discrimination requires the ability to maintain different prices for different consumers or groups, which is more feasible in markets with barriers to entry. If there are no barriers to entry, new competitors can enter, making it difficult to sustain different prices for different groups.

All of These Conditions Are Required for Successful Price Discrimination