Which of the following situations will come closest to perfect price discrimination?
A) Charging a different price on different days.
B) Charging a different price at the end of the year.
C) Negotiating a price with a group of consumers.
D) Negotiating a price with each individual consumer.
E) Offering instant,in-store rebates.

Question

Quizplus · Accepted Answer

Perfect price discrimination occurs when a firm charges a different price to each individual consumer based on their willingness and ability to pay. Negotiating a price with each individual consumer allows the firm to capture the maximum amount of consumer surplus and charge the highest possible price for each product or service.

Which of the Following Situations Will Come Closest to Perfect