Which of the following is considered a necessary condition for successful price discrimination?
A)A firm's customers must all have the same price elasticity of demand.
B)Firms are able to prevent resale among different groups of customers.
C)Firms must be able to determine each customer's maximum willingness to pay for the product in question.
D)Firms must operate in a perfectly competitive market.

Question

Quizplus · Accepted Answer

For successful price discrimination, firms must be able to prevent resale among different groups of customers. This ensures that higher-priced goods sold to one group cannot be resold to another group at a lower price, undermining the price discrimination strategy.

Which of the Following Is Considered a Necessary Condition for Successful