Price discrimination requires the firm to
A) separate customers according to their willingness to pay.
B) differentiate between different units of its product.
C) engage in arbitrage.
D) use coupons.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of customers based on their willingness to pay. To successfully implement price discrimination, the firm must be able to identify and separate customers based on their willingness to pay. The other options (B, C, and D) may be related to pricing strategies, but are not specific to price discrimination.

Price Discrimination Requires the Firm to