Answer to Question #118009 in Microeconomics for tajin

Question

Explain three types of price discrimination

Answer 1

1.     First-degree discrimination, or perfect price discrimination, occurs when a business charges the maximum possible price for each unit consumed.

2.     Second-degree price discrimination occurs when a company charges a different price for different quantities consumed, such as quantity discounts on bulk purchases.

3.     Third-degree price discrimination occurs when a company charges a different price to different consumer groups.