To successfully practice third-degree price discrimination, the firm must be a p

Question

To successfully practice third-degree price discrimination,

the firm must be a pure monopoly.

there must be differences in consumers' price elasticities between different markets.

it must be difficult for consumers in one market to sell the firm's product to consumers in the other market.

both b and c.

the firm must be a pure monopoly.

there must be differences in consumers' price elasticities between different markets.

it must be difficult for consumers in one market to sell the firm's product to consumers in the other market.

both b and c.

Explanation / Answer

D BOTH B AND C

To be a successful price discriminator, a seller must satisfy three conditions: (1) to have market control and be a price maker, (2) to identify two or more groups that are willing to pay different prices, and (3) to keep the buyers in one group from reselling the good to another group.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.