Which of the following statements is false?
A)A perfectly price-discriminating monopolist does not lower price on all previous units in order to sell an additional unit of its product.
B)Second-degree price discrimination is when the seller charges a uniform price per unit for one specific quantity, a lower price of an additional quantity, and so on.
C)Charging senior citizens less for medicine is an act of third-degree price discrimination.
D)Charging women less for a car wash is an act of second-degree price discrimination.
E)A price taker cannot practice price discrimination.

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves charging different prices based on the quantity of the product purchased, not based on the characteristics of the buyer. Charging women less for a car wash is an example of third-degree price discrimination, where different prices are charged to different groups based on their attributes or willingness to pay.

Which of the Following Statements Is False