If a seller engages in second-degree price discrimination, the seller captures more producer surplus than with uniform pricing.

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Second-degree price discrimination involves charging different prices based on quantity or volume purchased, which allows the seller to capture more consumer surplus and increase overall profit. As a result, the seller can also capture more producer surplus than with uniform pricing. Second-degree price discrimination involves charging different prices based on the quantity sold or other characteristics related to customer demand. This allows the seller to capture more surplus from customers with higher willingness to pay, while also increasing overall profits by selling to price-sensitive customers who would not purchase at a higher uniform price. As a result, the seller is able to capture more producer surplus with second-degree price discrimination compared to uniform pricing.

If a Seller Engages in Second-Degree Price Discrimination, the Seller