In the real world:
A)perfect price discrimination is impossible.
B)businesses can easily identify different groups' willingness to pay,so price discrimination is prevalent in every market.
C)price discrimination is practiced less today than it was in the mid-1900s.
D)price discrimination has only been observed where monopolies are present.

Question

Quizplus · Accepted Answer

Perfect price discrimination, in which a seller charges each consumer their exact maximum willingness to pay, is impossible in the real world because it would require perfect information about each consumer's preferences and budget constraints. While some price discrimination exists in most markets, it is not always prevalent or practiced to the extent of perfect price discrimination. Furthermore, price discrimination can occur in competitive markets as well, not just monopolistic ones.

In the Real World