Which of the following is NOT a characteristic of a successful price discriminator?
A) It can prevent the resale of the product.
B) It has monopoly power.
C) Its elasticity of demand differs across customers.
D) Its marginal costs of production differ across customers.

Question

Quizplus · Accepted Answer

A successful price discriminator does not require differing marginal costs of production across customers. Price discrimination is based on charging different prices to different customers for the same product, primarily relying on differences in demand elasticity and the ability to segment markets and prevent resale, not on variations in production costs.

Which of the Following Is NOT a Characteristic of a Successful