The oldest bakery in Marseille "Le four des navettes" has been specializing since 1781 in the manufacture of orange blossom cookies called navettes. Customers can purchase individual shuttles for 1 euro, or bags of 12 shuttles for 10 euros. Choose the statement that is correct:

Please choose an answer:

at. The shuttle oven practices first degree price discrimination (perfect discrimination) which leads to a socially optimal quantity of shuttles supplied to the market.

b. The shuttle oven practices second degree discrimination which leads to a smaller quantity of shuttles than is socially optimal. However, the quantity supplied is greater than the quantity which would be supplied in the absence of discrimination.

vs. The shuttle oven does not discriminate by price.

d. The shuttle oven practices third degree discrimination which leads to a smaller quantity of shuttles than is socially optimal.