Define perfect price discrimination.
A)A situation where a firm can charge the highest price.
B)A situation where a firm charges the highest price to a few of the customers
C)A situation where a firm can charge the lowest price to a few of the customers
D)A situation where a seller charges the highest price to all the customers who are willing to pay for each unit of a product bought.
E)A situation where a seller charges the lowest price to some of the regular customers

Question

Quizplus · Accepted Answer

Perfect price discrimination occurs when a seller is able to charge the highest price possible to each customer based on their willingness to pay. This means that different customers are charged different prices for the same product or service, based on the individual demand characteristics of each customer. Therefore, option D is the correct choice.

Define Perfect Price Discrimination