For the practice of price discrimination to be successful,the monopoly must:
A)be able to prevent resale of its product.
B)face similar demand curves for various markets.
C)have similar costs among markets.
D)have a downward sloping marginal cost curve.

Question

Quizplus · Accepted Answer

Preventing resale is crucial for the success of price discrimination as it ensures that consumers do not purchase the lower-priced product in one market and then resell it in another market where the price is higher. This allows the monopoly to charge different prices to different markets based on the willingness to pay of the consumers in that market.

For the Practice of Price Discrimination to Be Successful,the Monopoly