Third degree price discrimination is defined as:
A) While rarely prosecuted, it is illegal and a misdemeanor versus a felony as defined by the Surface Transportation Board Act
B) charging different prices to different buyers who use the same commodity or service
C) permissible only when the buyer has requested rebates
D) the least serious type of discrimination as versus first degree

Question

Quizplus · Accepted Answer

Third degree price discrimination involves charging different prices to different buyers who use the same commodity or service. This is permitted under certain conditions, such as when the buyers belong to different market segments with different elasticities of demand. It is not illegal, unlike first-degree price discrimination, where each buyer is charged their maximum willingness to pay. It is also different from rebates, which are voluntary discounts offered by the seller and requested by the buyer.

Third Degree Price Discrimination Is Defined As