Price Average Cost Tickets Sold Single Price Policy Students Non-Students $6 $1 $6 $1 30 60 Student Discount O A. the student discount policy because it is more profitable than the single price policy O B. the single price policy because the firm does not meet the three conditions necessary to engage in price discrimination OC. the single price policy because it is more profitable than price discrimination for this firm O D. the single price policy because price discrimination would not be legal for this firm Students Non-Students $5 $8 $1 $1 50 50 Table 10.2 Table 10.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. Should the firm adopt the single price policy or the student discount policy?

Price Average Cost Tickets Sold Single Price Policy Students Non-Students $6 $1 $6 $1 30 60 Student Discount O A. the student discount policy because it is more profitable than the single price policy O B. the single price policy because the firm does not meet the three conditions necessary to engage in price discrimination OC. the single price policy because it is more profitable than price discrimination for this firm O D. the single price policy because price discrimination would not be legal for this firm Students Non-Students $5 $8 $1 $1 50 50 Table 10.2 Table 10.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. Should the firm adopt the single price policy or the student discount policy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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