Price discrimination can be successful only if
A)the market is highly competitive.
B)the product cannot be resold.
C)there are many sellers.
D)the company lacks market power.

Question

Quizplus · Accepted Answer

Price discrimination is successful when customers are unable to resell the product at a higher price. If customers are able to resell the product, then they will be able to take advantage of price differences across markets, which will make it difficult for the company to price discriminate. In such a scenario, the company will not be able to capture the increased profits that can result from price discrimination.

Price Discrimination Can Be Successful Only If