Question

Which of the following is an example of 2ad degree price discrimination? An improve group lets customers choose how much they pay for their tickets. A toaster manufacturer makes a super cheap, low end toaster and a more expensive super high-end toaster. A restaurant offers a "Senior Breakfast" where senior citizens get all breakfast items at a 25% discount. A carnival chargers a price per person just to get in, and then also charges separately for each ride. a, b. c. d.

Answer 1

"A"

The second-degree price discrimination means a monopoly firm price discriminating on the basis of the quantity of good sold i.e. the monopoly can sell a higher amount of good at a cheaper cost and low amount of good at a higher cost. Here, an improve group lets consumer bargain harder and purchase a higher amount at a lower price. Making it a second-degree price discrimination.