Arlo owns a barbershop. What condition would make it difficult for him to price discriminate?
A)His product cannot be resold by customers.
B)He is aware of how much each customer is willing to pay.
C)He seeks to earn a profit.
D)He lacks market power.

Question

Quizplus · Accepted Answer

Price discrimination requires the ability to set different prices for different customers. This is often difficult if the business lacks market power, or the ability to influence prices in the market. Without market power, the business must compete on price with other businesses, and setting different prices for different customers may not be feasible. The other choices are not related to the difficulty of price discrimination.

Arlo Owns a Barbershop