Which of the following is NOT necessary in order for a monopolist to practice effective price discrimination?
A) The marginal cost of providing the same good to different groups of buyers must be different.
B) The monopolist must be able to segregate its market into different submarkets.
C) The buyers in various markets must face different price elasticities of demand.
D) The monopolist must have a downward sloping demand curve.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different consumers for the same good or service, not based on differences in the cost to serve them but on their willingness to pay. The marginal cost of providing the good to different groups does not need to be different for price discrimination to occur; what matters is the ability to segment the market, the presence of different price elasticities, and a downward sloping demand curve.

Which of the Following Is NOT Necessary in Order for a Monopolist