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.