Which of the Following Is Not a Necessary Condition of Price

question 58

Multiple Choice

Which of the following is not a necessary condition of price discrimination?

• A) The seller must be a price searcher.
• B) The seller must be able to distinguish between customers willing to pay different prices.
• C) It must cost the seller more to service some customers than others.
• D) Reselling the product must be extremely costly or must not be possible

---

Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services. It quantifies the satisfaction or happiness derived from consuming these goods and services.

Trade

The action of buying, selling, or exchanging goods and services between people or entities.

Pareto Optimal Allocation

An allocation of resources in which it is impossible to make any individual better off without making at least one individual worse off, indicative of efficiency in resource distribution.

Utility Function

A mathematical representation in economics that defines how consumers rank different bundles of goods based on their levels of satisfaction.