Question

Help please

Price discrimination may be successful if:

A. The firm does not have a monopoly on the pricing power of the good
B. Firms can prevent resale of the item and identify and separate groups of consumers
C. The firm does not have economies of sale
D. The fir. is operating within government regulations​

Answer 1

B. Firms can prevent resale of the item and identify and separate groups of consumers

Step-by-step explanation:

Price discrimination is where the producer of goods or services sells a product to different consumers at different prices i.e he sells raw materials at $50 to Mr A and sells same raw materials at $57 to Mrs D.

However, the act of price discrimination can said to be successful only when the producer can separate the consumers with different prices on same product from reselling the product to another consumer after buying from the producer.