Because it is more extensive,first-degree price discrimination is more profitable for the firm than is third-degree price discrimination.

Question

Quizplus · Accepted Answer

First-degree price discrimination involves charging each customer the maximum amount they are willing to pay, resulting in higher profits for the firm. Third-degree price discrimination involves charging different prices to different groups of customers based on their willingness to pay, which may not capture the maximum price for each individual customer. Therefore, first-degree price discrimination is more profitable for the firm.

Because It Is More Extensive,first-Degree Price Discrimination Is More Profitable