Two conditions are necessary for profitable price discrimination.First,the firm must be able to keep its national markets separate.The second condition is:

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The second condition necessary for profitable price discrimination is different price elasticities of demand in different countries. This means that the firm can charge different prices in different national markets based on the willingness to pay of customers in each market. If the demand is more elastic (i.e., customers are more price sensitive) in one market, the firm can charge a lower price to increase sales, while in another market with less elastic demand (i.e., customers are less price sensitive), the firm can charge a higher price to increase profits.

Two Conditions Are Necessary for Profitable Price Discrimination