Many cellular phone rate plans are structured as a combination of ________ price discrimination.
A) first-degree and second-degree
B) first-degree and third-degree
C) second-degree and third-degree
D) peak-load pricing and third-degree

Question

Quizplus · Accepted Answer

Many cellular phone rate plans offer different prices based on the amount of usage, such as charging a lower rate per minute for higher usage. This is an example of second-degree price discrimination. Additionally, many phone plans also offer different prices for different types of users, such as a lower rate for senior citizens, military personnel, or students. This is an example of third-degree price discrimination. Therefore, many cellular phone rate plans are structured as a combination of second-degree and third-degree price discrimination.

Many Cellular Phone Rate Plans Are Structured as a Combination