Inez owns a technology company. Which of the following conditions would make it difficult for her to price discriminate?
A)Her market is highly competitive.
B)Her product cannot be resold.
C)She is aware of how much each customer is willing to pay.
D)She is eager to increase her profits.

Question

Quizplus · Accepted Answer

In a highly competitive market, it is difficult to price discriminate because customers will easily switch to competitors offering a lower price. Price discrimination requires some degree of market power, which is diminished in a highly competitive market. The other options do not necessarily make it difficult to price discriminate - a product that cannot be resold, knowledge of customer willingness to pay, and a desire to increase profits can all still allow for price discrimination strategies to be implemented.

Inez Owns a Technology Company