Which of the following conditions must exist for a firm to practice price discrimination?
A) Consumer surplus must be zero.
B) There is only one firm in the market.
C) The good cannot be resold easily at a price lower than the market price.
D) The cost of production must be different for goods sold in different markets.
E) Consumers must have product loyalty.

Question

Quizplus · Accepted Answer

For price discrimination to be effective, the good cannot be easily resold, preventing arbitrage between consumers who are charged different prices.

Which of the Following Conditions Must Exist for a Firm