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The situation in which a firm charges different prices for different blocks of output is referred...

The situation in which a firm charges different prices for different blocks of output is referred to as _____; third-degree price discrimination refers to situation in which ________; a firm's profits will be greatest when it practices ______. A) first-degree price discrimination; a firm separates markets according to the price elasticity of demand; second-degree price discrimination B) second-degree price discrimination; a firm separates markets according to the price elasticity of demand; first-degree price discrimination C) second-degree price discrimination; a firm divides a market into thirds and charges each segment a different price; first-degree price discrimination D) first-degree price discrimination; a firm separates markets according to the price elasticity of demand; third-degree price discrimination

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B) second-degree price discrimination; a firm separates markets according to the price elasticity of demand; first-degree price discrimination

The situation in which a firm charges different prices for different blocks of output is referred to as second-degree price discrimination; third-degree price discrimination refers to a situation in which a firm separates markets according to the price elasticity of demand; a firm's profits will be greatest when it practices first-degree price discrimination.Third-degree price discrimination is not uncommon.In a first-degree price discrimination, the entire consumer surplus is taken by the firm for his own.

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