Two Conditions Are Necessary for Profitable Price Discrimination

question 129

Multiple Choice

Two conditions are necessary for profitable price discrimination.These are

• A) the firm must sell a standardized product; and the firm must be able to keep its national markets separate.
• B) the firm must be able to keep its national markets separate; and the existence of different price elasticities of demand in different countries must exist.
• C) the firm must rely upon substantial economies of scale; and the firm cannot be a member of a major trade block.
• D) the firm must sell highly differentiated products; and the existence of different prices elasticities of demand in different countries must exist.
• E) there must be no tariff differences between the countries and there must be a fragmented retail system.

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X-intercept

The point at which a line or curve crosses the x-axis of a graph.

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The point where a line or curve meets the y-axis of a graph.

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Graph Equation

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