Which of the following is considered a necessary condition for successful price discrimination?

A) A firm's customers must all have the same price elasticity of demand.
B) Firms are able to prevent resale among different groups of customers.
C) Firms must be able to determine each customer's maximum willingness to pay for the product in question.
D) Firms must operate in a perfectly competitive market.

B

Economics

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If the income elasticity of demand is 0.5, the good is

a. a luxury. b. a normal good (but not a luxury). c. an inferior good. d. a Giffen good.

Economics

In Figure 3-2, a move from a point like B to a point such as D

A. is not possible. B. can be attained with a more efficient allocation of resources. C. can be attained if there is an improvement in technology. D. can be attained if unused resources are put into production.

Economics