Which of the following is necessary for a monopolist to price discriminate between groups?
A) The groups have different willingness to pay.
B) The groups are identifiable.
C) A customer from one group cannot resell to a customer in another group.
D) All of the above conditions are necessary for the monopolist to price discriminate.

Question

Quizplus · Accepted Answer

For a monopolist to effectively price discriminate between different groups, all the listed conditions are necessary. The groups must have different willingness to pay (A), be identifiable based on some criteria (B), and there must be mechanisms in place to prevent resale between groups (C), ensuring that the price discrimination strategy can be maintained.

Which of the Following Is Necessary for a Monopolist to Price