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I have just visited the dropbox website and learned about its pricing

Economics Dec 12, 2020

I have just visited the dropbox website and learned about its pricing. I found the following individual plans (you can check on dropbox's site); Basic Plus Professional Bell yearly Bill monthly Free £7.99 / mo £16.58 / mo Your current plan Get started Get started Storage & access Storage 2 GB 2 TB (2.000 GB) 3 TB (3,000 GB) What type of pricing does this represent? Limit pricing 1st degree price discrimination 2nd degree price discrimination 3rd degree price discrimination None of the above

Expert Solution

Answer-

The correct answer is C.

It is an example of second degree price discrimination according to which prices are are charged basis on the quantity of the product of service used by the consumer.

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