Asked by
Arnob Hussain
on Nov 16, 2024
Verified
A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if it
A) only shows G-rated movies.
B) has no monopoly pricing power.
C) cannot easily distinguish between the two groups of customers.
D) can prevent children from buying the lower-priced tickets and selling them to adults.
Price Discrimination
The strategy of selling the same product to different buyers at different prices based on buyers' willingness to pay, not differences in production costs.
G-rated Movies
Films that are deemed suitable for all audiences, including children, by the Motion Picture Association.
- Master the concept of price discrimination and its utilization in different market environments.
- Identify examples of price discrimination in various industries and understand the criteria that make it feasible.
Verified Answer
GA
Learning Objectives
- Master the concept of price discrimination and its utilization in different market environments.
- Identify examples of price discrimination in various industries and understand the criteria that make it feasible.