First-degree price discrimination:
A. results in the firm extracting all surplus from consumers.
B. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased.
C. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers.
D. None of the answers are correct.
Answer: C
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An increase in interest rates will generally lead to a(n) ____ in present investment and a(n) ____ in future income and production
a. decrease, decrease b. decrease, increase c. increase, decrease d. increase, increase
Which of the following is a positive economic statement?
A) No individual should live in poverty. B) The rate of unemployment of young African-Americans exceeds that of white Americans. C) Unemployment is a more serious societal problem than inflation. D) Economic considerations are less relevant than ethical issues in deciding national policy.