Which of the following is a real-world example of first-degree price discrimination? A) A pizza parlor sells large and small pizzas. Although the large pizzas are twice as big as the small pizzas, they cost less than double the price of a small pizza. B) An electric company sells "blocks" of power at different prices. Specifically, any customer who buys more that Q₁ units of electricity can purchase additional units at a lower block price. C) Different prices are charged to different customers at a flea market. D) A movie theater charges senior citizens a cheaper price for movie tickets than it charges non-senior citizens for the same movie ticket.

Question

Quizplus · Accepted Answer

First-degree price discrimination involves charging each customer the maximum price they are willing to pay, which is exemplified by different prices being charged to different customers at a flea market.

Which of the Following Is a Real-World Example of First-Degree