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The Two Conditions That Are Necessary for Profitable Price Discrimination

Question 106

Multiple Choice

The two conditions that are necessary for profitable price discrimination are:


A) the firm must sell a standardized product and the firm must be able to keep its national markets separate.
B) the firm must be able to keep its national markets separate and the existence of different price elasticities of demand in different countries.
C) the firm must rely upon substantial economies of scale and the firm cannot be a member of a major trade bloC.
D) the firm must sell highly differentiated products and the existence of different prices elasticities of demand in different countries.

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