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Firms use price discrimination to increase their profits by converting part or all of consumer surplus to producer surplus. Which of the following market conditions
Firms use price discrimination to increase their profits by converting part or all of consumer surplus to producer surplus. Which of the following market conditions is not necessary for a firm to engage in price discrimination?
a) A firm must have the ability to prevent arbitrage.
b) A firm must have the ability to hide their prices from consumers.
c) A firm must have the ability to separate consumers into groups based on their elasticities of demand.
d) A firm must have some market power.
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