18 . Conditions for price discrimination

Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences.

Evaluate the following statement: "Price discrimination requires market segregation."

A. None of these choices

B. True, because the monopolist needs to know the willingness to pay of different groups of consumers

C. False, because the monopolist can never charge anyone their maximum willingness to pay anyway

D. False, because the monopolist does not need to know people's willingness to pay for its goods