For price discrimination to work ________.

For price discrimination to work ________.


A) the market must be segmentable and the segments must show similar intensities of demand

B) members in the lower-price segment must be able to resell the product to the higher-price segment

C) competitors must be able to undersell the firm in the higher-price segment

D) the practice must not breed customer resentment and ill will

E) the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market



Answer: D) the practice must not breed customer resentment and ill will


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