Which of the following is NOT necessary for price discrimination to occur?
A) The firm must be able to separate the market into identifiable groups.
B) The firm must be selling a durable good.
C) The firm must have a downward sloping demand curve.
D) The firm has to be able to prevent resale of the product or service.

Question

Quizplus · Accepted Answer

The durability of the good or product is not a necessary condition for price discrimination to occur. The other three conditions are necessary for price discrimination, namely, the ability to separate the market into groups, having a downward sloping demand curve, and the ability to prevent resale of the product or service.

Which of the Following Is NOT Necessary for Price Discrimination