In order to practice price discrimination, the firm must
A) offer a good at different prices to different segments of the market
B) first establish a monopoly position in the market
C) make sure the practice is sanctioned by the government
D) select a price so that different segments of the market will demand different quantities
E) first collude with the other firms in the industry

Question

Quizplus · Accepted Answer

Price discrimination involves selling the same good at different prices to different segments of the market, allowing the firm to capture more consumer surplus.

In Order to Practice Price Discrimination, the Firm Must