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12 September, 16:36

Which of the following statements is false? A perfectly price-discriminating monopolist does not lower price on all previous units in order to sell an additional unit of its product. Second-degree price discrimination is when the seller charges a uniform price per unit for one specific quantity, a lower price of an additional quantity, and so on. Charging senior citizens less for medicine is an act of third-degree price discrimination. Charging women less for a car wash is an act of second-degree price discrimination. A price taker cannot practice price discrimination.

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  1. 12 September, 16:45
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    Answer: Charging women less for a car wash is an act of second-degree price discrimination

    Explanation: Second-degree price discrimination occurs when a company charges a different price for different quantities of the same commodity consumed.

    Third-degree price discrimination occurs when a company charges a different price to different consumer groups.

    Seller shouldn't be a price taker in order for him/her to practice price discrimination.

    Hence, Charging women less for a car wash is an act of third - degree price discrimination
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