Question

The key conditions for successful price discrimination are ___________ and ____________.

a) market segmentation;
b) prevention of resale highly inelastic product demand;
c) prevention of resale market segmentation;
d) identical marginal costs identical marginal costs;
e) highly inelastic product demand

Answer 1

The key conditions for successful price discrimination are market segmentation and highly inelastic product demand.

Step-by-step explanation:

The key conditions for successful price discrimination are market segmentation and highly inelastic product demand.

Market segmentation refers to dividing the market into different segments based on factors such as income, age, or location, and charging different prices to each segment.

Highly inelastic product demand means that consumers are less responsive to changes in price, allowing the firm to charge higher prices without losing significant sales.