Carol Ann Is Trying to Explain to One of Her

question 2

Multiple Choice

Carol Ann is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets.She explains that the lowest-priced tickets are in the least desirable seats and the highest-priced tickets are in the most desirable seats,with the rest of the ticket prices falling somewhere in between.Carol Ann is describing ____________________.

• A)Product line pricing
• B)Captive pricing
• C)Price bundling
• D)Reference pricing
• E)Prestige pricing

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Definitions:

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Marginal Benefit

The incremental utility or satisfaction derived from the consumption or production of an additional good or service unit.

Marginal Cost

The increment in comprehensive expenses related to the generation of an extra unit of a good or service.

Total Benefit

The entire satisfaction or value derived from consuming a good or service.