The correct answer is C. Location of markets at distant places.
Price discrimination is a pricing strategy where a firm charges different prices for the same product to different consumers. This can be done by segmenting the market into different groups of consumers with different price elasticities of demand. Price discrimination can be successful if the following conditions are met:
- The firm must be able to segment the market into different groups of consumers with different price elasticities of demand.
- The firm must be able to prevent arbitrage, which is the buying of a good at a low price in one market and selling it at a higher price in another market.
- The firm must be able to prevent resale, which is the buying of a good at a low price and selling it to another consumer at a higher price.
If the markets are located at distant places, then it will be difficult for the firm to prevent arbitrage and resale. This is because consumers in different markets will be able to buy the good from the market with the lower price and resell it in the market with the higher price. This will make it difficult for the firm to charge different prices in different markets.
The other options are all conditions that are necessary for successful price discrimination. Option A, different elasticity of demand for different consumers, is necessary because the firm needs to be able to charge different prices to different consumers in order to make a profit. Option B, sellers should be an MNC, is necessary because the firm needs to be able to segment the market into different groups of consumers and prevent arbitrage and resale. Option D, consumers ignorance and prejudices, is necessary because the firm needs to be able to prevent consumers from realizing that they are being charged different prices for the same product.