Under ﬁrst-degree price discrimination, _____.
A) consumers pay a lump sum irrespective of how many units they buy
B) every consumer pays a ﬁxed price for each unit of the good
C) each consumer is charged exactly what they are willing to pay for the good
D) consumers are charged according to the number of units they buy

Question

Quizplus · Accepted Answer

First-degree price discrimination involves charging each consumer the maximum they are willing to pay for each unit of the good, capturing all consumer surplus.

Under ﬁRst-Degree Price Discrimination, _____