First- Degree and Second- Degree Price Discrimination Are Similar in Each

question 68

Multiple Choice

First- degree and second- degree price discrimination are similar in each of the following ways except which one?

• A)In both practices, consumers pay higher prices for the first units that they buy.
• B)In both practices, firms earn greater economic profit than if they charged a single price for every unit.
• C)They both yield the greatest possible profits to the firm.
• D)They both convert consumer surplus into additional economic profit.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, including regulation of money supply and interest rates.

U.S. Government Securities

Financial instruments issued by the U.S. Treasury or federal government agencies to finance government spending and obligations.

Assets Component

Parts or elements that make up the total value of assets owned by an individual or organization.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.