1) Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences.

Evaluate the following statement: "Price discrimination requires market segregation."

A)True, because the monopolist needs to know the willingness to pay of different groups of consumers

B)None of these choices

C)False, because the monopolist can never charge anyone their maximum willingness to pay anyway

D)False, because the monopolist does not need to know people's willingness to pay for its goods

Which of the following kinds of price discrimination occurs when each customer is charged one price for the first set of units purchased and a lower price for subsequent units purchased?

A)Perfect price discrimination

B)Third-degree price discrimination

C)Second-degree price discrimination

D)This is not an example of price discrimination