Third-degree price discrimination exists whenever:
A) the seller knows exactly how much each potential customer is willing to pay and will charge accordingly.
B) different prices are charged by blocks of services.
C) the seller can separate markets by geography,income,age,etc.,and charge different prices to these different groups.
D) the seller will bargain with buyers in each of the markets to obtain the best possible price.

Question

Quizplus · Accepted Answer

Third-degree price discrimination means charging different prices to different groups of customers based on factors such as geography, income, age, etc. It does not require the seller to know exactly how much each individual customer is willing to pay (option A), nor does it involve bargaining with buyers (option D). Option B refers to quantity discounts, which is a different form of price discrimination.

Third-Degree Price Discrimination Exists Whenever