The government strictly enforces antitrust laws is necessary for a firm to practice price discrimination.
Only when customers from various sub-markets are prepared to pay different prices for the same commodity is price discrimination possible.
The identification of various market segments is a crucial requirement for price discrimination to take place. If this is true, various groups' price elasticity of demand will vary. Because of this, the company can set different rates based on how sensitive its customers are to price changes.
Selling to each client at a distinct price is known as personalized pricing (or first-degree price differentiation); perfect price discrimination is the process of maximizing the price that each consumer is willing to pay.
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