Question

What Is First Degree Price Discrimination

Answer 1

Answer:

First degree price discrimination – the monopoly seller of a good or service must know the absolute maximum price that every consumer is willing to pay. ... Examples include airline and travel costs, coupons, premium pricing, gender based pricing, and retail incentives.

First-degree price discrimination, alternatively known as perfect price discrimination, occurs when a firm charges a different price for every unit consumed. The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.

First-degree discrimination, or perfect price discrimination, occurs when a company charges the maximum possible price for each unit consumed. Because prices vary among units, the firm captures all available consumer surplus for itself. ... This discrimination is the most common.