Which of the following is true of successful price discriminators?
A)They make greater profits than by charging everyone a uniform price
B)Their customers must have different willingness to pay.
C)Their customers must have difficulty reselling the good to other customers.
D)They must have some monopoly power.
E)All of the above are true of successful price discriminators

Question

Quizplus · Accepted Answer

All of the above are true for successful price discriminators. By charging different prices to different customers, successful price discriminators can capture more of the consumer surplus and make greater profits compared to charging a uniform price to all customers. In order to successfully price discriminate, customers must have different willingness to pay and face difficulty in reselling the good to other customers. Additionally, price discrimination is often facilitated by some monopoly power, as this allows the firm to exercise greater control over prices and limit price arbitrage between different market segments.

Which of the Following Is True of Successful Price Discriminators