Economics 9708 · AS & A Level · 7.6

7.6 — practice question

What condition must be satisfied for a firm to practise third degree price discrimination effectively?

  • AAll consumers and producers must be in the same geographical location.
  • BCustomers must be divided into separate markets for the same product.
  • CEach separate market must have identical price elasticities of demand.
  • DPrice undercutting is required to enter a monopolistic market.

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