The Winnipeg Goldeyes Ballpark Charges Different Prices for Seats in Different

question 90

Multiple Choice

The Winnipeg Goldeyes ballpark charges different prices for seats in different areas of the ballpark, even though their costs are the same. What is this form of pricing called?

• A)location-based
• B)skimming
• C)product-form
• D)time-based
• E)penetration

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Diseconomies of Scale

The situation in which the cost of producing each individual unit rises when a company's production volume grows, often resulting from inefficiencies and a rise in complexity.

Long-run Average Total Cost

The cost per unit of output in which all inputs, including capital, are variable, showing economies and diseconomies of scale over time.

Increasing Returns to Scale

A situation in which a proportional increase in all inputs results in a more than proportional increase in output, demonstrating economies of scale.