Question

what is perfect price discrimination? question 8 options: a) charging consumers different prices across time. b) charging consumers who are less price sensitive a lower price and consumers who are more price sensitive a higher price. c) charging every consumer a different price equal to their willingness to pay. d) charging consumers whose demand is less elastic a higher price and consumers whose demand is more elastic a lower price. e) charging consumers a price equal to consumer

Answer 1

Perfect price discrimination is a theoretical pricing strategy where each consumer is charged a price equal to their specific willingness to pay.

Step-by-step explanation:

Perfect price discrimination, also known as first-degree price discrimination, refers to the practice where a seller charges every consumer a different price equal to their individual willingness to pay. Option c) charging every consumer a different price equal to their willingness to pay, most accurately describes this concept. This form of pricing strategy is theoretical and practically difficult to implement as it requires the seller to know the maximum price each consumer is willing to pay for a product or service. It is distinct from other forms of price discrimination which may involve charging different prices based on consumer attributes, time periods, or quantities purchased.