Which of the following is not a real-world example of second-degree price discrimination?
A) A pizza parlor sells large and small pizzas. Although the large pizzas are twice as big as the small pizzas, they cost less than double the price of a small pizza.
B) An electric company sells "blocks" of power at different prices. Specifically, any customer who buys more that Q1 units of electricity can purchase additional units at a lower block price.
C) Sam's Club® warehouses sell bulk quantities of macaroni and cheese for a cheaper per unit price than a grocery store, but the boxes are packaged together so that the customer must buy six boxes at a time.
D) A movie theater charges senior citizens a cheaper price for movie tickets than it charges non-senior citizens for the same movie ticket.
Correct Answer:
Verified
Q31: Let the inverse demand curve for
Q32: A block tariff is a form of:
A)first-degree
Q33: All consumers are alike and each
Q34: Electricity prices may be an example of
Q35: Let a monopolist face consumer group
Q37: With _ degree price discrimination, the firm
Q38: Which of the following is a real-world
Q39: Let the inverse demand curve for
Q40: When a movie theater charges a lower
Q41: Bundling is a form of:
A)first-degree price discrimination.
B)second-degree
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