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Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 6

9708Differing objectives and policies of firms

What is a key condition for effective price discrimination?

  1. AThe product cannot be resold to another consumer.
  2. BThe product must be price inelastic.
  3. CThe profits from one market can be used to subsidise another market.
  4. DThere are low barriers to entry into the market.

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Correct answer: A. The product cannot be resold to another consumer.

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