Airlines Have First-Class or Business-Class Seating,for Which Customers Pay a Higher

question 118

Multiple Choice

Airlines have first-class or business-class seating,for which customers pay a higher price to receive more room,extra amenities,and more attentive service.Would this illustrate price discrimination?

• A) No,because first-class and economy-class tickets represent two entirely different products.
• B) No,because there is no additional value in purchasing a first-class ticket.
• C) Yes,because airlines are able to charge different prices to customers seeking an improved flying experience.
• D) Yes.Since wealthy travelers are the only individuals who can afford first-class travel,the airline is able to set pricing based on their increased ability to pay.
• E) Maybe.It is price discrimination only if no other airline offers first-class tickets for that travel route.

---

Definitions:

Maximum Return

The highest possible profit or yield that an investment or action can generate.

"As is" Basis

A term used to indicate that an item is being sold in its current state, with any existing faults or conditions, and without warranty.

Production Planning

The process of organizing and controlling all aspects of the production process, from sourcing raw materials to scheduling workforce and machinery.

Forecasts

Predictions or estimates of future events or trends, particularly regarding weather or economic conditions.