Which of the following is not a requirement for a successful price discrimination strategy?

Question

Quizplus · Accepted Answer

Transaction costs being the same for all consumers is not a requirement for successful price discrimination. In fact, it is often the case that transaction costs are different for different groups of consumers, which is why price discrimination can be effective in capturing more consumer surplus. The other three options are requirements for successful price discrimination: charging a price greater than marginal cost allows the firm to capture more profit, knowing the willingness to pay of different consumer groups is necessary to set different prices, and preventing arbitrage is necessary to prevent the high-paying consumers from buying from the low-price market.

Which of the Following Is Not a Requirement for a Successful