The Athenian Theatre sells tickets for the same play at different prices: a lower price to those who opt for the seats at the back of the theatre and a higher price for those who purchase seats in the front, around the stage
Which of the following statements is true?
A) This is an example of product differentiation but not price discrimination.
B) Since the cost of producing the play does not change with the seating configuration, this is evidence of price discrimination based on market segmentation.
C) Charging two different prices is an effective way to avoid an excess demand for play tickets; the higher price lowers quantity demanded to some extent.
D) The theatre practices first-degree price discrimination by setting prices based on willingness to pay.
A
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What does the negative slope of the production possibilities frontier imply?
A) Diminishing marginal utility. B) The only way to increase one person's utility is to decrease the other's. C) Diminishing marginal rates of technical substitution. D) The only way to increase output of one good is to decrease output of another.
Which of the following terms describes the process wherein many of the different stages of producing a good happen in different geographic locations?
a. supply chain management b. splitting up the supply chain c. splitting up the value chain d. value Chain management