Consider the Following Scenario to Answer the Following Questions: the Varsity,located

question 35

Multiple Choice

Consider the following scenario to answer the following questions: The Varsity,located in downtown Atlanta,is the world's largest drive-in restaurant.Located near the Georgia Tech campus,the drive-in attracts two distinct types of customers-college students and visitors to Atlanta.The owners are considering offering a student discount of $1 off their combo meal,which is regularly priced at $9.There are 5,000 students interested in purchasing a combo meal,with a maximum willingness to pay of $8.There are 5,000 visiting customers interested in purchasing the combo meal,with a maximum willingness to pay of $9.Assume that each customer,at most,will purchase a single meal and the marginal cost is $5.
-Which of the following examples is the closest to perfect price discrimination?

• A) nontransferable goods that are sold in an auction
• B) Internet-access package deals for new and old customers
• C) monthly versus daily bus tickets
• D) daily deals in an electronics store
• E) clubs offering waived cover charges for "ladies night"

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Definitions:

Independent Coffee Shop

A locally owned and operated establishment that sells coffee and other related products, distinct from chain coffee shops.

Trendy Urban

Refers to something fashionable or in vogue within urban culture, often associated with modern, stylish lifestyles in city environments.

Relationship Marketing

A strategy designed to foster customer loyalty, interaction, and long-term engagement by offering value beyond the product itself.

Regular Customers

Individuals who frequently return to the same business, establishment, or service provider due to satisfaction, loyalty, or habit.