Which of the following is not a necessary characteristic of a successful price discriminator?
A) It has market power.
B) It can prevent the resale of the product.
C) Its marginal costs of production differ across customers.
D) Willingness to pay for its product differs across customers.

Question

Quizplus · Accepted Answer

A successful price discriminator does not need to have different marginal costs of production across customers; rather, it needs to have market power, prevent resale, and have customers with different willingness to pay.

Which of the Following Is Not a Necessary Characteristic of a Successful