Which of the following is the fundamental condition that would allow a firm to practice price discrimination?
A) All customers possess identical willingness to pay for the product.
B) The good can be purchased at one market and resold at another market.
C) There are two or more different demand curves for the good.
D) Demand for the good is high.

Question

Quizplus · Accepted Answer

Price discrimination requires the presence of two or more different demand curves for the product, which means that different customers are willing to pay different prices for the same product. This allows the firm to charge higher prices to customers who are willing to pay more, while still selling to customers who are only willing to pay a lower price. The other options do not necessarily lead to price discrimination.

Which of the Following Is the Fundamental Condition That Would