Which of the following will make price discrimination difficult for a monopolist?
A) The possibility of resale of the product
B) A constant marginal cost curve
C) An increasing marginal cost
D) A downward sloping demand curve

Question

Quizplus · Accepted Answer

The possibility of resale of the product would make it difficult for the monopolist to price discriminate because buyers who purchase at a lower price in one market may be able to resell the product in another market where the price is higher. This would undermine the monopolist's ability to charge different prices for the same product to different groups of buyers. The other options listed (B, C, and D) would not necessarily make price discrimination difficult for a monopolist.

Which of the Following Will Make Price Discrimination Difficult for a Monopolist