Which of the following is NOT a precondition for price discrimination?
A) The product cannot be resold to another customer.
B) The price elasticities of demand are different for each group of consumers.
C) The product is a durable good.
D) The seller must have some market power.

Question

Quizplus · Accepted Answer

Price discrimination can apply to both durable and non-durable goods, so the fact that a product is a durable good is not a precondition for price discrimination. The other options listed (A, B, and D) are all preconditions for price discrimination.

Which of the Following Is NOT a Precondition for Price