Suppose a firm uses the following price strategy for every customer.The first two units purchased cost $4 each,and any extra unit costs $3.50.What kind of price discrimination is this?
A) First-degree price discrimination
B) Group price discrimination.
C) Non-uniform pricing.
D) Uniform pricing.

Question

Quizplus · Accepted Answer

This pricing strategy is not uniform because the price of each unit is not the same for every customer. It is also not first-degree price discrimination because it is not based on the willingness to pay of each customer. Finally, it is not group price discrimination because there is no differentiation between different groups of customers. Therefore, the only option left is C) Non-uniform pricing.

Suppose a Firm Uses the Following Price Strategy for Every