A firm charges one price in the United States and a different price in Europe. Selling goods and services at different prices to two different markets not arising from higher costs is known as
A) First-degree price discrimination
B) Second-degree price discrimination
C) Third-degree price discrimination
D) Fourth-degree price discrimination

Question

Quizplus · Accepted Answer

Third-degree price discrimination involves charging different prices to different groups of consumers for the same product, not based on cost differences but rather on varying demand elasticities or other factors such as geographic location.

A Firm Charges One Price in the United States and a Different