Which of the Following Is Not a Real-World Example of Second-Degree

question 17

Multiple Choice

Which of the following is not a real-world example of second-degree price discrimination?

• A) A pizza parlor sells large and small pizzas. Although the large pizzas are twice as big as the small pizzas, they cost less than double the price of a small pizza.
• B) An electric company sells "blocks" of power at different prices. Specifically, any customer who buys more that Q₁ units of electricity can purchase additional units at a lower block price.
• C) Sam's Club® warehouses sell bulk quantities of macaroni and cheese for a cheaper per unit price than a grocery store, but the boxes are packaged together so that the customer must buy six boxes at a time.
• D) A movie theater charges senior citizens a cheaper price for movie tickets than it charges non-senior citizens for the same movie ticket.

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Definitions:

Growth Stage

The phase in a business lifecycle where it experiences rapid revenue and customer base expansion.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market through its growth, maturity, and eventual decline.