1. Explain in detail the meaning of First Degree Price Discrimination,
ASSIGNMENTScenarioAssume you have recently been hired as the new manager of EyeTech
Company, an innovative company that sells specialized eye care equipment, primarily to
Ophthalmologists, Optometrists, Eye Surgeons, Clinics, and Hospitals. You have decided that
in an effort to increase sales, EyeTech will use one form of price discrimination for at least
one year. There are typically three different degrees of price discrimination to choose from:
First Degree, Second Degree, and Third Degree.Explain in detail the meaning of First Degree
Price Discrimination, Second Degree Price Discrimination, and Third Degree Price
Discrimination.Assume that each degree of price discrimination can be successfully
implemented by EyeTech Company. Select the degree of price discrimination that you
believe will be the most successful in improving sales, and explain why. (Note that you can
only select one specific degree. Do not select more than one degree or a combination of
degrees.)To also gain more insights into EyeTech’s primary consumers and their demand
for EyeTech’s products, you have decided to use one of the four strategic tools for managers
highlighted in the Module Three Lecture to better understand consumer demand. Identify
and describe the tool (one only) you believe would provide the best insights into EyeTech’s
primary consumers, and explain why you believe this particular tool would be the best one
to use.