With ___________________, the firm tries to price each unit at the consumer's reservation price while with _____________________, the firm charges different uniform prices to different consumer groups or market segments.
A)first-degree price discrimination; third-degree price discrimination.
B)first-degree price discrimination; second-degree price discrimination.
C)third-degree price discrimination; first-degree price discrimination.
D)second-degree price discrimination; first-degree price discrimination.

Question

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First-degree price discrimination, also known as perfect price discrimination, involves a firm charging each individual customer a different price that matches their willingness to pay. This is the most efficient form of price discrimination but requires the firm to have perfect information about each customer's reservation price. Third-degree price discrimination involves charging different prices to different consumer groups based on their willingness to pay, such as senior discounts or student discounts. This is the most common form of price discrimination but is less efficient than first-degree discrimination. First-degree price discrimination is also known as perfect price discrimination. In this type of price discrimination, the firm tries to charge each customer their maximum willingness to pay or reservation price. Third-degree price discrimination is when the firm charges different prices to different market segments based on their different price elasticities of demand.

With ___________________, the Firm Tries to Price Each Unit at the Consumer's