A Movie Theater Can Increase Its Profits Through Price Discrimination

question 14

Multiple Choice

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)can prevent children from buying the lower-priced tickets and selling them to adults.
• B)has some degree of monopoly pricing power.
• C)can easily distinguish between the two groups of customers.
• D)All of the above are correct.

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