Which is NOT a necessary condition for price discrimination to exist? a)The firm must face a...

Which is NOT a necessary condition for price discrimination to exist?

a)The firm must face a downward sloping demand curve.

b)The firm must identify buyers with different elasticities of demand.

c)The firm must be able to prevent resale of the product or service.

d)The firm must establish different prices to reflect marginal cost.

Solutions

Expert Solution

Option d

The firm must establish different prices to reflect marginal cost.

Price discrimination occurs when there is some degree of monopoly power, there is no resale of product and there are different elasticities of demand for a different set of consumers.

Rahul Sunny answered 2 years ago

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