In order to practice price discrimination a firm must

Question

Quizplus · Accepted Answer

Price discrimination requires the firm to have some degree of market power, which means that it can influence the price of its product or service. This allows the firm to charge different prices to different customers or segments based on their willingness to pay. The other options are not necessary for price discrimination. Avoiding detection by the government may be desirable but is not a requirement for price discrimination. The product does not have to be homogeneous, and advertising may or may not be useful depending on the specific situation.

In Order to Practice Price Discrimination a Firm Must