For a firm to price discriminate,
A)it must be a natural monopoly.
B)it must be regulated by the government.
C)it must have some market power.
D)consumers must tell the firm what they are willing to pay for the product.

Question

Quizplus · Accepted Answer

For a firm to price discriminate, it must have some degree of market power, meaning it can influence the price of its product or service rather than taking the market price as given. This allows the firm to charge different prices to different consumers based on their willingness to pay, maximizing profits. Being a natural monopoly or being regulated by the government are not requirements for price discrimination, nor is it necessary for consumers to explicitly tell the firm what they are willing to pay.

For a Firm to Price Discriminate