Third-degree price discrimination refers to situation in which:
A) a firm charges different prices for different blocks of output.
B) a firm separates markets according to the price elasticity of demand.
C) a firm is able to charge the maximum price consumers are willing to pay for each unit of output.
D) a firm divides a market into thirds and charges each segment a different price.
B
You might also like to view...
Economic status tends to be passed on from one generation to the next _____
a. regardless of the monetary wealth that is transmitted from parents to children b. because of the monetary wealth that is transmitted from parents to children c. in nearly all societies d. a and c
Firms that sell information products experience relatively high fixed costs but, once they have produced the first unit, can
A) sell additional units at a loss, or above cost. B) provide expensive information products to consumers. C) sell additional units at a relatively low cost per unit. D) experience short-run diseconomies of scale.