Which of the following is not a precondition for price discrimination?
A. The commodity involved must be a durable good.
B. The good or service cannot be profitably resold by original buyers.
C. The seller must be able to segment the market, that is, to distinguish buyers with different
elasticities of demand.
D. The seller must possess some degree of monopoly power.
Answer: A
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Suppose Maria can make 12 pizzas or 4 lasagnas every Saturday afternoon, while Gina can make 10 pizzas or 2 lasagnas every Saturday afternoon. Which statement is true?
A) Maria is the most efficient producer of both pizza and lasagna. B) Gina is the least efficient producer of both pizza and lasagna. C) It costs Maria 3 pizzas to produce 1 lasagna. D) It costs Gina 5 lasagnas to produce 1 pizza. E) All of the above are true.
Firms may choose to discriminate in order to reduce information costs associated with screening applicants
a. True b. False Indicate whether the statement is true or false