Second-degree price discrimination:
A) is the practice of posting a discrete schedule of declining prices for different ranges of quantities.
B) eliminates the problem of double marginalization.
C) results in transfer pricing.
D) None of the answers are correct.

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves offering different prices for different quantities or versions of a product, often seen in bulk purchasing discounts or versions of a product with varying features. This is accurately described as posting a discrete schedule of declining prices for different ranges of quantities.

Second-Degree Price Discrimination