Economics Q87
- Option : C
- Explanation : In first-degree price discrimination, a company is able to charge each customer the highest price the customer is willing to pay. In seconddegree price discrimination, a company offers a menu of quantity-based pricing options designed to induce customers to self-select based on how highly they value the product. The scenario given in the question is an example of third- degree price discrimination where customers are segregated by demographic or other traits.
