question 8\n1 pts\nwhich of the following is a necessary condition for successful price discrimination?\nthe…

question 8\n1 pts\nwhich of the following is a necessary condition for successful price discrimination?\nthe seller must possess market power.\nthe buyer must possess market power.\nbuyers must have identical inelastic demands.\ntransactions costs must be zero.

question 8\n1 pts\nwhich of the following is a necessary condition for successful price discrimination?\nthe seller must possess market power.\nthe buyer must possess market power.\nbuyers must have identical inelastic demands.\ntransactions costs must be zero.

Answer

Brief Explanations:

Price - discrimination occurs when a firm charges different prices to different consumers for the same good or service. For a seller to successfully engage in price - discrimination, it must have market power. Market power allows the seller to influence prices. If the buyer has market power, they would not allow price - discrimination. Identical inelastic demands would not enable price - discrimination as there would be no basis for charging different prices. Zero transaction costs are not a necessary condition for price - discrimination.

Answer:

The seller must possess market power.