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21 February, 16:00

4) A tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennis lessons for adults. The tennis pro is practicing:4) A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. E) fifth-degree price discrimination.

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  1. 21 February, 17:20
    0
    C) third-degree price discrimination

    Explanation:

    -First-degree price discrimination is when a business has a different price for each unit consumed.

    -Second-degree price discrimination is when a company has a different price for different quantities.

    -Third-degree price discrimination is when a business has different prices for different segments of the market.

    -Fourth-degree price discrimination is when a company has the same prices but has different costs.

    According to this, the tennis pro is practicing third-degree price discrimination because he has different prices for children and adults which are different market segments.
  2. 21 February, 18:05
    0
    Answer: The correct answer is b). Second-degree price discrimination.

    Explanation:

    Price discrimination can be said to be practiced when different prices are charged for the same good or service. Three types of price discrimination exist - first-degree, second-degree, and third-degree price discrimination.

    Second-degree price discrimination occurs when a company charges a different price for different quantities consumed. Such can be seen in situations of bulk purchases.
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