By far,the most frequently encountered price discrimination is the
A)first-degree price discrimination.
B)second-degree price discrimination.
C)third-degree price discrimination.
D)fourth-degree price discrimination.

Question

Quizplus · Accepted Answer

Third-degree price discrimination is the most frequently encountered type of price discrimination, where firms charge different prices to different groups of consumers based on their willingness to pay. This type of discrimination is often seen in the form of student discounts, senior citizen discounts, and loyalty programs, among others. First-degree price discrimination is rare because it requires firms to know each consumer's maximum willingness to pay and be able to charge them accordingly. Second-degree price discrimination involves charging different prices based on the quantity purchased, such as bulk discounts. Fourth-degree price discrimination refers to geographical price discrimination, where prices vary by location.

By Far,the Most Frequently Encountered Price Discrimination Is the