Which of the following must a firm be able to do to successfully price discriminate?
i.divide buyers into different groups according to their willingness to pay
ii.prevent resale of the good or service
iii.identify into which group (high willingness to pay or low willingness to pay)a buyer falls
A) ii only
B) i and ii
C) i and iii
D) iii only
E) i, ii, and iii

Question

Quizplus · Accepted Answer

Price discrimination requires a firm to: (i) segment the market based on willingness to pay, (ii) prevent resale to ensure each segment buys at their designated price point, and (iii) accurately identify which customers belong in each segment.

Which of the Following Must a Firm Be Able to Do