To be able to price discriminate,a firm must
A) have a public franchise.
B) be a natural monopoly.
C) be able to prevent resales of its good.
D) have a patent.
E) have an ownership barrier to entry.

Question

Quizplus · Accepted Answer

To price discriminate, a firm must be able to prevent resales of its good in different markets with different prices. This could be done through geographic market segmentation, product bundling, or customer relationship management. None of the other options listed are necessary conditions for price discrimination.

To Be Able to Price Discriminate,a Firm Must