In order for price discrimination to be successful,
A) there must be a strong case for arbitrage.
B) national markets must be kept separate.
C) demand must be very elastic.
D) a large change in demand must be triggered by a small change in price.

Question

Quizplus · Accepted Answer

In order for price discrimination to be successful, a firm must be able to keep its national markets separate. If a firm cannot do this, individuals or businesses may undercut its attempt at price discrimination by engaging in arbitrage.

In Order for Price Discrimination to Be Successful