Hickey-Freeman will sell a second suit to the same person for a $100 discount. This attempt to take advantage of an individual's falling additional utility for more consumption is called:
A) a two-part tariff.
B) first degree price discrimination.
C) block pricing.
D) cost-plus pricing.

Question

Quizplus · Accepted Answer

Block pricing involves offering a discount on additional units purchased, which aligns with the scenario of selling a second suit at a discount to the same person.

Hickey-Freeman Will Sell a Second Suit to the Same Person