Customers Are Usually More Willing to Pay More for the First

Multiple Choice

Customers are usually more willing to pay more for the first unit of a good they purchase than for the second, third, or subsequent units. This implies that

A) typical consumers are irrational.
B) firms are using non-linear price discrimination.
C) firms are unable to determine their customers' reservation prices.
D) typical consumers have a downward-sloping demand curve.