When Theaters Vary Seat Prices Due to Audience Preferences for Seats

question 17

Multiple Choice

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing.

• A) customer-segment
• B) location-based
• C) time-based
• D) product line
• E) captive product

---

Definitions:

Gross Margin

Gross margin is the difference between revenue and cost of goods sold, expressed as a percentage of revenue.

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets, indicating how effectively the company uses its assets to generate profit.

Return On Equity

A financial ratio indicating the profitability of a firm relative to shareholder equity, showing how effectively equity is used to generate profits.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a product or service.