If Big Lumber Company offers customers a lower price per unit of lumber if the customer purchases more than 100 pieces of lumber, this is an example of _______ .
A)third- degree price discrimination
B)zero- degree price discrimination
C)second- degree price discrimination
D)first- degree price discrimination

Question

Quizplus · Accepted Answer

This is an example of second-degree price discrimination as the price varies based on the quantity purchased. Customers who purchase more than 100 pieces of lumber receive a lower price per unit than those who purchase less than 100 pieces. First-degree price discrimination involves charging each customer their maximum willingness to pay, while third-degree price discrimination involves charging different prices to different groups of customers based on characteristics such as age or location. Zero-degree price discrimination is not a recognized form of price discrimination.

If Big Lumber Company Offers Customers a Lower Price Per