A major fruit juice manufacturer fails in its attempt to engage in price discrimination between students and all other consumers of fruit juice.Which of the following explanations is most likely to account for this failure?
A)The students resold the juice to other consumers.
B)The market for fruit juice was monopolistically competitive.
C)The price elasticity of demand for fruit juice was different for each group.
D)The cost of producing the fruit juice was extremely high.
E)The students preferred to purchase juice from other small juice manufacturers.

Question

Quizplus · Accepted Answer

The failure of the price discrimination attempt is most likely due to the students reselling the juice to other consumers, undermining the manufacturer's ability to maintain different price points for different consumer groups.

A Major Fruit Juice Manufacturer Fails in Its Attempt to Engage