All of the following are true for first- degree price discrimination except which one?
A)Each consumer pays the maximum price they are willing to pay for every unit purchased.
B)Consumers pay less for the first units that they purchase.
C)Consumers receive no consumer surplus.
D)In reality, it is impossible to practice.

Question

Quizplus · Accepted Answer

First-degree price discrimination involves charging each individual consumer the maximum price they are willing to pay for every unit purchased, meaning there is no consumer surplus. However, consumers do not necessarily pay less for the first units they purchase; this is characteristic of second-degree price discrimination. Additionally, while first-degree price discrimination may be difficult to implement in practice, it is not impossible as some firms, such as negotiators or auctioneers, may be able to achieve it.

All of the Following Are True for First- Degree Price