An upscale fusion bistro in a small town charges higher prices for the same menu items at dinner time than at lunch time. Does the bistro necessarily practice price discrimination?
Explain your answer
The bistro practices price discrimination if it charges customers at dinner time more than those at lunch time and there is no cost difference. However, the costs for customers at dinner time are typically higher than the costs for customers at lunch time because customers at dinner time tend to stay longer and therefore consume more services. The higher prices at dinner time may well reflect the higher operating costs for the same menu items.
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In a report made to the U.S. Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected"
This statement suggests that A) U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety. B) there is a tradeoff between safety and fuel economy. C) society should value fuel economy more highly than consumer safety because of the long-term environmental benefits generated by less gasoline use. D) society should value safety more highly than fuel economy.