Which of the following is NOT a necessary condition for a firm to price discriminate?
A) The firm must be able to separate markets.
B) Buyers in different markets must have different elasticities of demand.
C) Resale of the product must be preventable.
D) The firm must be a price-taker.

Question

Quizplus · Accepted Answer

The firm being a price-taker is not a necessary condition for price discrimination to occur. In fact, firms with market power, such as monopoly or oligopoly, are more likely to engage in price discrimination. The other three conditions listed (ability to separate markets, different elasticities of demand, and preventable resale) are all necessary for price discrimination to be successful.

Which of the Following Is NOT a Necessary Condition for a Firm