First-Degree Price Discrimination

Multiple Choice

First-degree price discrimination:

A) occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased.
B) results in the firm extracting all surplus from consumers.
C) occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers.
D) None of the answers are correct.