Asked by
Kijara Ortiz
on Oct 25, 2024
Verified
A doctor charges two different prices for medical services, and the price level depends on the patients' income such that wealthy patients are charged more than poorer ones. This pricing scheme represents a form of:
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third-degree price discrimination.
D) pricing at each consumer's reservation price.
Price Discrimination
A strategy for setting prices where the same or very similar products or services are offered at different prices by the same seller in various markets.
Pricing Scheme
A strategy or method used by businesses to set prices for their products or services, often designed to optimize profits, market share, or customer satisfaction.
- Attain insight into the concept of price discrimination and its subdivisions (first-degree, second-degree, third-degree).
- Establish the contexts in which firms choose to exercise multiple kinds of price discrimination.
Verified Answer
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Learning Objectives
- Attain insight into the concept of price discrimination and its subdivisions (first-degree, second-degree, third-degree).
- Establish the contexts in which firms choose to exercise multiple kinds of price discrimination.