Question: Between the first-degree block pricing and second-degree quantity discounts, which will generate more profit for the firm? a. First-degree because it captures all consumer surplus.

  1. Between the first-degree block pricing and second-degree quantity discounts, which will generate more profit for the firm?

a. First-degree because it captures all consumer surplus.

b. Second-degree because it captures all consumer surplus.

c. Second-degree because it does not capture all consumer surplus but it captures more than first-degree.

d. First-degree because it does not capture all consumer surplus but it captures more than second-degree.

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