With ________ degree price discrimination, the firm tries to price each unit at the consumer's reservation price.
A)first
B)second
C)third
D)fourth

Question

Quizplus · Accepted Answer

With first degree price discrimination, the firm can charge the maximum amount that each consumer is willing to pay, which is equivalent to their reservation price. This results in the firm capturing the entire consumer surplus and maximizing profits.

With ________ Degree Price Discrimination, the Firm Tries to Price