Necessary conditions for price discrimination include:
A)identical tastes among buyers.
B)differences in willingness to pay among customers.
C)b and c
D)no resale

Question

Quizplus · Accepted Answer

The necessary condition for price discrimination is the existence of differences in willingness to pay among customers. Without this condition, there would be no way for a seller to charge different prices to different customers. Identical tastes among buyers would actually prevent price discrimination, as customers would always be willing to pay the same price for the same product. The absence of resale can enhance price discrimination, but it is not a necessary condition.

Necessary Conditions for Price Discrimination Include