Which of the following is NOT a condition for a firm to engage in price discrimination?
A) Consumers are partitioned into two or more types, with one type having a more elastic demand than the other.
B) The firm has a means of identifying consumer types.
C) The consumers are sincere in revealing their true natures.
D) There is no resale market for the good.

Question

Quizplus · Accepted Answer

The condition that consumers be sincere in revealing their true natures is not necessary for price discrimination to occur. In fact, firms often use indirect methods, such as observing purchasing patterns or demographic information, to identify consumer types and set prices accordingly.

Which of the Following Is NOT a Condition for a Firm