Price discrimination is prevented in situations where
A) customers can resell the good.
B) firms have monopolies.
C) there are legal barriers to entry.
D) there are no close substitutes for the good or service.
E) customers have different willingnesses to pay for the good.

Question

Quizplus · Accepted Answer

Price discrimination occurs when firms charge different prices to different customers for the same product or service. However, if customers are able to resell the product or service, they can effectively eliminate price discrimination by purchasing the product at the lower price and then reselling it to others at a higher price. This levels the playing field for all customers and prevents price discrimination from being effective.

Price Discrimination Is Prevented in Situations Where