Third-degree price discrimination refers to situation in which: A) a

Third-degree price discrimination refers to situation in which:

A) a firm charges different prices for different blocks of output.
B) a firm separates markets according to the price elasticity of demand.
C) a firm is able to charge the maximum price consumers are willing to pay for each unit of output.
D) a firm divides a market into thirds and charges each segment a different price.

ANSWER

B