Price discrimination is possible when a firm is able to

a. sell the efficient quantity

b. sell whatever quantity of a good it wants to at a price determined by the market

c. identify the prices charged by its competitors

d. identify and separate different types of buyers, and sell a product that cannot be resold

e. sell the quantity at which average total cost is minimized

d. identify and separate different types of buyers, and sell a product that cannot be resold

Explanation:

Segmenting the market into different groups is a way to charge varying prices. Each group has their own demand curve.

D) identify and separate different types of buyers, and sell a product that cannot be resold

Explanation:

Price discrimination refers to selling the same product at different prices to different customers. For example, a chain of grocery stores that sells dairy products at a certain price in some stores, and sells the same products at a higher price at the suburbs.

Same product ⇒ different customers ⇒ different prices

In order to successfully do this, a company must first be able to effectively segment their customers, since it will only sell the products at a higher price to customers that have higher income. Then it must also sell products that cannot be subject to arbitration (bought in one place and resold in another making a profit).

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