Which of the following is not a real-world example of second-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) Sam's Club® warehouses sell bulk quantities of macaroni and cheese for a cheaper per unit price than a grocery store, but the boxes are packaged together so that the customer must buy six boxes at a time. 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

Second-degree price discrimination involves charging different prices based on the quantity consumed or the version of the product, not based on consumer characteristics like age. Option D describes third-degree price discrimination, where prices vary based on consumer segments.

Which of the Following Is Not a Real-World Example of Second-Degree