The condition/s required for a monopolist to engage in price discrimination is/are:
A) that buyers are not able to resell the good.
B) when it cannot identify specific groups of consumers with different elasticities.
C) that the demand curve must be perfectly elastic.
D) for potential competitors to threaten entry into the market.

Question

Quizplus · Accepted Answer

Price discrimination by a monopolist involves charging different prices to different buyers based on their willingness to pay. This can only occur if the buyers are not able to resell the good, as reselling would allow buyers to take advantage of lower prices offered to others.

The Condition/s Required for a Monopolist to Engage in Price