ACCA · Question 08 · Decision-making techniques
Section A
OmniStream, a cross-border digital streaming multinational, charges different monthly subscription fees in different countries for the exact same service.
Which TWO of the following conditions must exist for OmniStream's price discrimination strategy to be effective and profitable?
Answer options:
The markets must be separable, preventing customers in high-price markets from buying in low-price markets.
The company must have a monopoly in all the markets it operates in.
There must be different price elasticities of demand in the different markets.
The cost of providing the service must be significantly different in each country.
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