Asked by giannah alessandra on Jun 11, 2024
Verified
A firm is charging a different price for each unit purchased by a consumer. This is called:
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third-degree price discrimination.
D) fourth-degree price discrimination.
E) fifth-degree price discrimination.
Second-degree Price Discrimination
A pricing strategy where prices vary based on the quantity consumed or purchased, rather than customer characteristics, allowing sellers to capture more consumer surplus.
- Familiarize yourself with the idea of price discrimination and its different types (first-degree, second-degree, third-degree).
Verified Answer
BF
babar farooqJun 15, 2024
Final Answer :
A
Explanation :
First-degree price discrimination, also known as perfect price discrimination, occurs when a seller charges a different price for each unit purchased, tailored to the maximum price the consumer is willing to pay for each unit.
Learning Objectives
- Familiarize yourself with the idea of price discrimination and its different types (first-degree, second-degree, third-degree).