Question

Charging higher prices to residential customers than to industrial customers is an example of A. ​second-degree price discrimination. B. ​first-degree price discrimination. C. perfect price discrimination. D. ​third-degree price discrimination. E. quantity price discrimination.

Answer 1

Answer:

The correct answer is D

Explanation:

Third Degree Price Discrimination is the kind of the discrimination, which occurs when the company charges a different price to the different groups of consumers.

For example, the movie cinema or theater might divide or categorize the moviegoers into children, seniors and adults, while each of them will pay a different price when watching the same movie.

So, in this case, that the residential customers are charged higher prices to industrial customers, which is an example of third degree price discrimination.