When a Firm Practices Price Discrimination in Two Market Segments

Multiple Choice

When a firm practices price discrimination in two market segments, the firm:

A) must be able to identify market segments that have different price elasticities.
B) will typically charge higher prices in the larger market segment.
C) must be selling a heterogeneous product.
D) must choose market segments that have inelastic demand.
E) sets price according to the different costs of serving different market segments.