Which of the following is/are condition(s) for price discrimination of product? I. Firms must have some…

For a seller to practice price discrimination successfully, three essential conditions must be satisfied: the firm must possess some degree of monopoly or market power (I); the price elasticities of demand must differ across the market segments (II); and the markets must be separable so that arbitrage (resale from low-price to high-price segments) is prevented (III). Free entry and exit (IV) erodes monopoly power.