Which of the following conditions is NOT necessary for a firm to be able to engage in price discrimination? I. The firm must be able to produce to the point at which price equals marginal revenue.
II) The firm must easily be able to identify consumers with different demand elasticities.
III) The firm must be able to prevent resale of the item it produces and sells.
A) I only
B) III only
C) Both I and II only
D) Both II and III only

Question

Quizplus · Accepted Answer

Condition III is not necessary for a firm to engage in price discrimination, as the ability to prevent resale is not always essential for successful price discrimination. However, conditions I and II are necessary for price discrimination to occur.

Which of the Following Conditions Is NOT Necessary for a Firm