For effective price discrimination,the firm must ensure that the product is able to be resold.

Question

Quizplus · Accepted Answer

For effective price discrimination, the firm actually wants to prevent resale. This is because if customers can buy a product at a lower price and resell it to others who would have otherwise bought it at a higher price, the firm loses potential revenue from those customers who are willing to pay more. Therefore, the firm wants to limit or prevent resale in order to maximize their profits from price discrimination.

For Effective Price Discrimination,the Firm Must Ensure That the Product