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Which of the following conditions is NOT necessary for price discrimination?

A. suspicion of free snails
B. some degree of market power
C. two or more groups of buyers with different elasticities
D. all of the above
E. B and C only

User Piece
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1 Answer

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Final answer:

Price discrimination is a strategy where a seller charges different prices to different groups of buyers for the same good or service.

Step-by-step explanation:

Price discrimination is a strategy where a seller charges different prices to different groups of buyers for the same good or service. While several conditions are necessary for price discrimination, the condition that is NOT necessary is A) suspicion of free snails. This condition is irrelevant to price discrimination.

The conditions necessary for price discrimination include: B) some degree of market power, which allows the seller to set different prices; and C) two or more groups of buyers with different elasticities, meaning that different groups of buyers have different sensitivity to price changes.

User Apogne
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