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.

Question

Quizplus · Accepted Answer

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.

A Firm Is Charging a Different Price for Each Unit