AQA A-Level Economics 2025/6

Economics • A-Level

Question 1 of 114

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Which condition is essential for a firm to be able to practice third‑degree price discrimination effectively?

Hint: Consider what the firm needs to do in order to charge different prices to different groups of buyers.

The firm must be able to identify and segment consumers with different price elasticities of demand The firm must have increasing returns to scale The firm must sell a homogeneous product in a monopolistically competitive market The firm must be a price taker in a perfectly competitive market

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