A Movie Theater Offers a Reduced Price for an Afternoon

question 82

Multiple Choice

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

• A) location-based
• B) customer-segmented
• C) cost-based
• D) product form
• E) time-based

---

Definitions:

Hidden Information

Circumstances in which one party in a transaction has access to more or better information than the other party, potentially leading to an imbalance in decision-making or exploitation.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.

All-You-Can-Eat Buffets

Dining establishments offering customers the opportunity to eat unlimited amounts of food for a fixed price.

Heavier

Describes an object that has a greater weight compared to another object or relative to what is typical.