Which of the following conditions is not required for price discrimination?
A)Buyers with different elasticities must be physically separate from each other.
B)The good or service cannot be profitably resold by original buyers.
C)The seller must be able to segment the market, that is, to distinguish buyers with different elasticities of demand.
D)The seller must possess some degree of monopoly power.

Question

Quizplus · Accepted Answer

For price discrimination to be effective, it is not necessary for buyers with different elasticities to be physically separate from each other. Market segmentation can be based on other factors such as age, time of purchase, or quantity bought, rather than physical separation.

Which of the Following Conditions Is Not Required for Price