If Best Dogs only sells their hot dogs in packages of eight, all of the following are true except which one?

Question

Quizplus · Accepted Answer

Selling hot dogs only in packages of eight does not qualify as second-degree price discrimination, as there is no variation in the price based on the quantity being purchased. The other options are all true: Best Dogs has market power in its ability to restrict the number of hot dogs sold per package, it is converting consumer surplus into profit by forcing customers to purchase more hot dogs than they may have originally wanted, and the customers are indeed spending the consumer surplus from the first few hot dogs on the last few hot dogs.

If Best Dogs Only Sells Their Hot Dogs in Packages