Which of the following is a real-world example of a price discriminator?
A) A cinema charging a lower ticket price for students
B) A farmer selling apples at a consistent price
C) A convenience store charging the same price for all soft drinks
D) A manufacturer producing goods at a constant cost

Question

Which of the following is a real-world example of a price discriminator?
A) A cinema charging a lower ticket price for students
B) A farmer selling apples at a consistent price
C) A convenience store charging the same price for all soft drinks
D) A manufacturer producing goods at a constant cost

Accepted Answer

***A*** ∻Key Concept∻ ⚹Price Discrimination⚹ ∻Explanation∻ ⚹Price discrimination occurs when a seller charges different prices to different customers for the same product or service, where these price differences are not due to differences in cost. A cinema charging a lower ticket price for students is an example of third-degree price discrimination, where different prices are set for different segments of the market (in this case, students).⚹◊How does price discrimination impact the firm's profit in a competitive market?⍭ Generate me a similar question◊

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