Answer to Question #155328 in Microeconomics for suchayana

Question

To engage in price discrimination, it is necessary that

a. a seller be a price setter.

b. there be no arbitrage.

c. The seller is able to distinguish among the buyers in the market.

d. a and b

e. all of the above

Answer 1

To engage in price discrimination, it is necessary that holds three conditions: a seller be a price setter, there be no arbitrage and the seller is able to distinguish among the buyers in the market.

Therefore, the answer is (e) all of the above.