4) A tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennis lessons for adults. The tennis pro is practicing:4) A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. E) fifth-degree price discrimination.

Question

Business

Gage Gould

31 December, 05:17

4) A tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennis lessons for adults. The tennis pro is practicing:4) A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. E) fifth-degree price discrimination.

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Answers (2)

Know the Answer?

Leonardo Raymond · Answer 1

C) third-degree price discrimination

Explanation:

-First-degree price discrimination is when a business has a different price for each unit consumed.

-Second-degree price discrimination is when a company has a different price for different quantities.

-Third-degree price discrimination is when a business has different prices for different segments of the market.

-Fourth-degree price discrimination is when a company has the same prices but has different costs.

According to this, the tennis pro is practicing third-degree price discrimination because he has different prices for children and adults which are different market segments.

Nash Sullivan · Answer 2

Answer: The correct answer is b). Second-degree price discrimination.

Explanation:

Price discrimination can be said to be practiced when different prices are charged for the same good or service. Three types of price discrimination exist - first-degree, second-degree, and third-degree price discrimination.

Second-degree price discrimination occurs when a company charges a different price for different quantities consumed. Such can be seen in situations of bulk purchases.