Price discrimination depends on the nonexistence of

Question

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Price discrimination relies on charging different prices to different groups of consumers, based on their willingness to pay. However, if an arbitrage opportunity exists, where a consumer can buy the product at a lower price and resell it at a higher price to another group of consumers, price discrimination becomes ineffective. Therefore, the nonexistence of arbitrage opportunities is necessary for successful price discrimination. Consumer surplus and extra-normal profits may still exist in a price discrimination scenario.

Price Discrimination Depends on the Nonexistence of