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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 surpluses 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 statements associated with this question are correct.
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You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to investigate this concept.
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