Price discrimination can help improve efficiency in the market because goods are sold to more people,thus increasing profits.If all consumers have the same tastes,will a firm be able to price discriminate?
A) yes,because the market is homogeneous
B) yes,as long as reselling is prohibited in the market
C) no,because the firm will not be able to distinguish among groups of consumers
D) no,because the similarities among consumers will lead to collusion among buyers
E) yes,because there will be a monopoly in the market (because all consumers want to purchase the same goods and services)

Question

Quizplus · Accepted Answer

Price discrimination requires the ability to distinguish among groups of consumers with different levels of willingness to pay. If all consumers have the same tastes, such distinction cannot be made, and price discrimination would be impossible. Therefore, option C is the correct choice.

Price Discrimination Can Help Improve Efficiency in the Market Because