Question

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.

Answer 1

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