Question

Price discrimination can occur only under ____________.

• A. competitive market
• B. imperfect competition
• C. pure competition
• D. all of the above

Answer 1

The correct option is B imperfect competition

Price discrimination is when the same good is sold at different prices to different consumers.

Price discrimination occur only under imperfect markets such as Monopoly, Oligopoly, Monopolistic competition etc.

It cannot occur under Perfect competition market structure as there are large number of sellers for homogeneous product. So if a firm charges a higher price the consumer will go to the other sellers.