For a firm to price discriminate,what must be the case

Question

Quizplus · Accepted Answer

Price discrimination requires a firm to have some market power, which allows it to charge different prices to different groups of customers. This can be achieved through product differentiation, branding, or other tactics that give the firm some degree of control over pricing. While natural monopolies and regulated firms may have some market power, it is not a necessary condition for price discrimination. Large fixed costs may be a factor in a firm's pricing decisions, but do not necessarily lead to price discrimination.

For a Firm to Price Discriminate,what Must Be the Case