A Movie Theater Can Increase Its Profits Through Price Discrimination

question 620

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

• A)adults buy more popcorn than children.
• B)the cost of showing a movie to children is less than the cost of showing a movie to adults.
• C)it has some degree of monopoly-pricing power.
• D)All of the above are correct.

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