Which of the following conditions must be satisfied for price discrimination to be successful? A. The seller must have a different product for each group of customers and must be able to prevent arbitrage between the groups B. The seller must be able to identify each customer as having a high or low value. C. The seller must be able to identify groups with differing elasticity of demand, must be able to prevent arbitrage, and must not face additional marginal cost to serve each group D. none of the above

Respuesta :

Answer:

b. the seller must be able to identify each customer as having a high or low value

The following conditions must be satisfied for price discrimination to be successful is The seller must be able to identify each customer as having a high or low value Option(b) is correct.

What does Price Discrimination means?

Price discrimination is a microeconomic evaluating procedure where indistinguishable or generally comparative labor and products are sold at various prices by similar supplier in various business sectors.

Price discrimination is recognized from item separation by the more significant contrast underway expense for the diversely priced items associated with the last system.

Price discrimination requires market division and a few means to deter markdown clients from becoming affiliates and, likewise, contenders. This normally involves utilizing at least one method for forestalling any resale: keeping the different price bunches discrete, making price examinations troublesome, or limiting evaluating data. The limit set up by the advertiser to keep portions separate is alluded to as a rate wall.

Price discrimination separates the eagerness to pay of the clients, to dispense with however much purchaser excess as could be expected. By understanding the flexibility of the client's interest, a business could utilize its market ability to distinguish the clients' eagerness to pay.

Therefore Option(b) is correct.

Learn more about Price Discrimination here:

brainly.com/question/14969650

#SPJ2