Successful price discrimination cannot take place if
A)the market is perfectly competitive.
B)the market can be segmented into different buyer groups.
C)customers are not able to resell the product.
D)the demand curve facing the firm is downward sloping.

Question

Quizplus · Accepted Answer

Perfectly competitive markets have identical products and perfect information, making it impossible for a firm to charge different prices to different buyers. This eliminates the possibility of successful price discrimination.

Successful Price Discrimination Cannot Take Place If