The Following Table Summarizes Six Potential Customers' Ages and Willingness

question 76

Multiple Choice

The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:

-SkyMasters has decided to charge two different prices,a high price and low price,based on age.What would be the increase in total revenue the company gains from its practice of price discrimination versus what it would earn if it charged a single price to all customers?

• A) $1,300
• B) $1,200
• C) $650
• D) $300
• E) $100

---

Definitions:

Enjoyment

The state or process of taking pleasure in something, often leading to feelings of happiness and satisfaction.

Conditioned Response

A reflex developed through training in response to a stimulus that is typically neutral.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any need for prior learning.

Unconditioned Stimulus

An innate trigger that spontaneously and effortlessly evokes a reaction without the need for previous learning.