Question

If​ Mario's Pizza offers consumers who purchase one medium sized pizza a second pizza at half​...

If​ Mario's Pizza offers consumers who purchase one medium sized pizza a second pizza at half​ price, this is an example of​ ________.

A.

second−degree

price discrimination

B.

first−degree

price discrimination

C.

zero−degree

price discrimination

D.

third−degree

price discrimination

Homework Answers

Answer #1

If ywr talk in simple terms then 1st degree price discrimination or perfect price discrimination occurs when the company charges maximum possible price from each consumer

it also causes zero consumer surplus

second degree price discrimination is occurs with quantity

third degree price discrimination related with the demographics like senior ,students, military Personal etc

Now from the given question it can be seen that the Mario's pizza offers oneHalf size pizza with medium-size pizza free

so this is called come under the quantity hence the price discrimination is 2nd degree price discrimination

the correct answer is option A

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