Question

Price discrimination requires that different customers have different levels of price sensitivity and that:A. the cost of production is different for every customer. B. marginal costs are falling. C. supply is contant. D. customers cannot resell the product amongst themselves.

Answer 1

Answer:

Customers cannot resell the product amongst themselves.

Explanation:

Price discrimination can be defined as a pricing strategy which involves selling a particular product at different prices. It can also be described as how organizations charge each customer different amount of prices for the same good or service, this is typically based on how much a particular customer is ready to pay for the product.

The following are the requirements for price discrimination:

- Organizations must prevent the resale of the product by separating the market.

- Seller should ensure to control the supply of the product.

- Price elasticity must be different.