Second-degree price discrimination is the practice of charging:
A) the reservation price to each customer.
B) different prices for different quantity blocks of the same good or service.
C) different groups of customers different prices for the same products.
D) each customer the maximum price that he or she is willing to pay.

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves charging different prices for different quantity blocks of the same good or service. This allows the seller to extract more consumer surplus from customers who are willing to pay higher prices for larger quantities, while still generating revenue from those who are only willing to pay lower prices for smaller quantities. This type of discrimination is also known as quantity discrimination.

Second-Degree Price Discrimination Is the Practice of Charging