Which of the following is not a requirement for a successful price discrimination strategy?
A)A firm must have the ability to charge a price greater than marginal cost.
B)Some consumers must have a greater willingness to pay for the product than other consumers, and the firm must be able to know what prices consumers are willing to pay.
C)The firm must be able to prevent arbitrage.
D)Transactions costs must be the same for all consumers.

Question

Quizplus · Accepted Answer

Transactions costs must be the same for all consumers is not a requirement for a successful price discrimination strategy. The other three requirements - ability to charge a price greater than marginal cost, differential willingness to pay among consumers, and ability to prevent arbitrage - are essential for effective price discrimination.

Which of the Following Is Not a Requirement for a Successful