Price discrimination is possible only if
A)economies of scale exist.
B)markets can be segregated.
C)each person in the market has the same elasticity of demand.
D)prices are kept secret so those paying the high price do not know that others paid less.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices for the same product or service to different groups of customers based on their willingness to pay. The market must be able to be segregated so that different groups of customers can be identified and charged different prices. Economies of scale may make it easier to implement price discrimination, but they are not a necessary condition. Elasticity of demand may vary among customers, which is what makes price discrimination possible. Keeping prices secret may help prevent customers from bargaining for lower prices, but it is not a primary factor in enabling price discrimination.

Price Discrimination Is Possible Only If