Which of the following is not a necessary condition for price discrimination?
A)The firm must be a price maker.
B)The firm must be able to distinguish between customers.
C)The firm must be able to prevent resale between customers.
D)The firm must be able to product homogenous products.
E)The firm must be facing a downward-sloping demand curve.

Question

Quizplus · Accepted Answer

Price discrimination can occur even if the products are not homogeneous as long as the firm can distinguish between customers and prevent resale (B and C), and if the firm is a price maker (A) and facing a downward-sloping demand curve (E). Therefore, D is not a necessary condition for price discrimination.

Which of the Following Is Not a Necessary Condition for Price