A Firm Practicing Third-Degree Price Discrimination May

question 146

Multiple Choice

A firm practicing third-degree price discrimination may:
I. segment its customers by age, such as offering senior citizen discounts.
II. charge customers living in certain zip codes a higher price than customers living in other locations.
III. initially charge high prices and then reduce the price over time to sell to the more price-sensitive consumers.

• A) II
• B) I and II
• C) I
• D) I, II, and III

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Definitions:

Level I

Typically refers to an initial or basic stage in a series of levels or phases, often pertaining to entry-level requirements or classifications.

Stage 1

Represents the initial phase in a process or series of developments.

Bertrand Russell

A British philosopher, logician, mathematician, historian, writer, social critic, and Nobel laureate, known for his work in mathematical logic and analytic philosophy.

Passions

Intense, driving feelings or convictions that motivate individuals to pursue particular activities or goals with enthusiasm and zeal.