Consider the Following Scenario to Answer the Following Questions: the Varsity,located

question 35

Multiple Choice

Consider the following scenario to answer the following questions: The Varsity,located in downtown Atlanta,is the world's largest drive-in restaurant.Located near the Georgia Tech campus,the drive-in attracts two distinct types of customers-college students and visitors to Atlanta.The owners are considering offering a student discount of $1 off their combo meal,which is regularly priced at $9.There are 5,000 students interested in purchasing a combo meal,with a maximum willingness to pay of $8.There are 5,000 visiting customers interested in purchasing the combo meal,with a maximum willingness to pay of $9.Assume that each customer,at most,will purchase a single meal and the marginal cost is $5.
-Which of the following examples is the closest to perfect price discrimination?

• A) nontransferable goods that are sold in an auction
• B) Internet-access package deals for new and old customers
• C) monthly versus daily bus tickets
• D) daily deals in an electronics store
• E) clubs offering waived cover charges for "ladies night"

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Definitions:

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Individual’s expectancy of how effective his or her efforts to accomplish a goal will be in any particular circumstance.

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