A Firm Is Charging a Different Price for Each Unit

question 28

Multiple Choice

A firm is charging a different price for each unit purchased by a consumer. This is called:

• A) first-degree price discrimination.
• B) second-degree price discrimination.
• C) third-degree price discrimination.
• D) fourth-degree price discrimination.
• E) fifth-degree price discrimination.

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Definitions:

UCC

A wide-ranging series of statutes known as the Uniform Commercial Code is in place to govern commercial activities across the US.

Implied Warranty

A legal assurance in a transaction that the goods or services sold meet certain standards even if not explicitly stated.

Lease

A contractual agreement by which one party conveys property, services, or land to another party for a specified period of time, in return for periodic payments.

UCC

Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States.