Which one of the following is a condition required for the practice of price discrimination?
A) The firm must be a perfect competitor.
B) The price elasticity of demand for the product must be the same under all circumstances.
C) The market must be segmented.
D) None of the above are conditions required for the practice of price discrimination.

Question

Quizplus · Accepted Answer

Price discrimination requires the ability to segment the market so that different prices can be charged to different groups based on their willingness to pay, elasticity of demand, or other factors. This segmentation allows a firm to maximize profit by capturing more consumer surplus.

Which One of the Following Is a Condition Required for the Practice