All of the following conditions,except one,must exist in order for a firm to successfully practice price discrimination.Which is the exception?
A)The firm must be a price taker.
B)The firm must be able to identify which customers are willing to pay more.
C)The firm must be able to prevent the resale of its output by low-price customers to high-price customers.
D)The firm must be able to charge higher prices to some customers without losing their business.
E)The firm must be a price setter.

Question

Quizplus · Accepted Answer

Price discrimination is only possible when a firm has at least some degree of market power, allowing it to set different prices for different groups of customers. A price taker, by definition, does not have market power and therefore cannot practice price discrimination.

All of the Following Conditions,except One,must Exist in Order for a Firm