Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Charging different prices based on the customer's identity
B
Offering different prices based on the quantity purchased or the product variant
C
Setting a uniform price for all customers
D
Adjusting prices based on the time of purchase
Understanding the Answer
Let's break down why this is correct
Answer
Second-degree price discrimination is when a company charges different prices for the same product based on how much of it a customer buys or the specific features they choose. This means that customers have the choice to pay different prices depending on their preferences. For example, a movie theater might sell tickets at a lower price for matinee shows compared to evening shows. This pricing strategy encourages more people to attend during less busy times, while those who want to see a movie at a popular time pay more. By using this method, companies can maximize their profits while also catering to different customer needs.
Detailed Explanation
This type of pricing changes based on how much a customer buys or the type of product they choose. Other options are incorrect because Some might think this means charging different prices based on who the customer is; A common mistake is thinking all customers pay the same price.
Key Concepts
second-degree
Topic
Understanding Price Discrimination
Difficulty
easy level question
Cognitive Level
understand
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