For price discrimination to exist, all of the following are necessary EXCEPT
A) a downward sloping demand curve.
B) an identifiable group of buyers with different elasticities of demand.
C) an upward sloping marginal cost curve.
D) there can be no resale of the product.

Question

Quizplus · Accepted Answer

An upward sloping marginal cost curve actually supports price discrimination as it allows the seller to charge higher prices to those with less elastic demand without incurring higher costs. The other factors - a downward sloping demand curve, identifiable groups of buyers, and no resale of the product - are all necessary for price discrimination to be effective.

For Price Discrimination to Exist, All of the Following Are