Which of the following is a necessary condition for successful price discrimination?
A)The seller must possess market power.
B)The buyer must possess market power.
C)Transactions costs must be zero.
D)Buyers must have identical inelastic demands.

Question

Quizplus · Accepted Answer

Price discrimination is only possible when the seller has market power, meaning they have the ability to influence the price of a good or service in the market. Without market power, the seller cannot charge different prices to different groups of consumers. The other options (B, C, and D) are not necessary conditions for successful price discrimination.

Which of the Following Is a Necessary Condition for Successful