Which of the following is NOT a requirement for a firm to be able to price discriminate?
A) monopoly power
B) groups of customers with different willingness to pay for the good
C) economies of scale
D) ability to keep the members of different customer groups separate
E) ability to prevent resales of the product by customers

Question

Quizplus · Accepted Answer

Economies of scale are not necessary for a firm to be able to price discriminate. However, monopoly power, groups of customers with different willingness to pay, ability to keep customer groups separate, and ability to prevent resales are all important requirements for price discrimination.

Which of the Following Is NOT a Requirement for a Firm