Which of the following is the fundamental condition that would allow a firm to practice price discrimination?
The good can be purchased in one market and resold in another market.
All customers possess identical willingness to pay for the product.
There are two or more different demand curves for the good.
Demand for the good is high.
The fundamental condition that would allow a firm to practice price discrimination is:
There are two or more different demand curves for the good.
This condition indicates that different groups of consumers have different willingness to pay for the same product, which is essential for a firm to charge different prices to different customers based on their demand elasticity.