Question

Second-degree price discrimination: Multiple Choice results in transfer pricing. None of the answers are correct. is the practice of posting a discrete schedule of declining prices for different ranges of quantities. eliminates the problem of double marginalization.

Answer 1

Answer:

is the practice of posting a discrete schedule of declining prices for different ranges of quantities

Explanation:

In the case of the second degree price discrimination, the firm should chares the different kinds of the prices as per the quantity demanded i.e. if the large quantities are ordered so it should be charged at the less price and if the small quantities are ordered so it should be charged at the high prices. The motive behind this is to motivate the bulk sales that means when the buyer purchased the products in bulk so he will get the high discounts

Therefore the third option is correct