## Understanding Price Discrimination in Economics**In order to price discriminate, a firm must:**I. **Have market power.**II. **Sell a good that cannot be resold.**III. **Be able to estimate a consumer's willingness to pay.****Question: Which conditions must a firm meet to price discriminate?****Options:**- O II and III- O I only- O I, II, and III- O I and III- O II onlyIn the given multiple-choice question, students are required to identify the necessary conditions for a firm to implement price discrimination. Price discrimination involves charging different prices to different consumers for the same good or service, based on their willingness to pay. Understanding these prerequisites helps in comprehending market structures and pricing strategies in economics.

The monopoly would result in the market in which it has a single seller and many buyers in the…

In order to price discriminate, a firm must I. Have market power. II. Sell a good that cannot be resold. III. Be able to estimate a consumer's willingness to pay. O Il and II O l only O , I,and III I and III Il only

In order to price discriminate, a firm must I. Have market power. II. Sell a good that cannot be resold. III. Be able to estimate a consumer's willingness to pay. O Il and II O l only O , I,and III I and III Il only

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

## Understanding Price Discrimination in Economics

**In order to price discriminate, a firm must:**

I. **Have market power.**
II. **Sell a good that cannot be resold.**
III. **Be able to estimate a consumer's willingness to pay.**

**Question: Which conditions must a firm meet to price discriminate?**

**Options:**
- O II and III
- O I only
- O I, II, and III
- O I and III
- O II only

In the given multiple-choice question, students are required to identify the necessary conditions for a firm to implement price discrimination. Price discrimination involves charging different prices to different consumers for the same good or service, based on their willingness to pay. Understanding these prerequisites helps in comprehending market structures and pricing strategies in economics.

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