Question

First-degree price discrimination:

a. None of the answers are correct.
b. results in the firm extracting all surplus from consumers.
c. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased.
d. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers.

Answer 1

C ) occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers.

Step-by-step explanation:

First-degree price discrimination is known as the perfect price discrimination because firm charges maximum price for each unit of good purchased by the customer. So the firm ables to extract all cosumer surplus.