Price Discrimination

Question 1

First degree

Answer 1

Charging every customer the maximum that they are prepared to pay. Occurs when the monpolist perfectly segments thd market

Question 2

Second degree price discrimination

Answer 2

Business selling off packages or blocks of a product deemed to be surplus capacity at lower price than previously published / advertised price

Question 3

Third degree price discrimination

Answer 3

Monopolist spilt customers into two or more separate markets