Firms that can effectively price discriminate
A) can be either perfectly competitive firms or monopolies.
B) can prevent the resale of their products.
C) have only one class of buyers, buyers willing to pay a high price.
D) Both answers A and B are correct.
E) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

Firms that can effectively price discriminate must be able to prevent the resale of their products to ensure that different prices can be charged to different consumers without the lower-priced goods being resold to those who would otherwise pay more.

Firms That Can Effectively Price Discriminate