A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if a. adults buy more popcorn than children. b. the cost of showing a movie to children is less than the cost of showing a movie to adults. c. it has some degree of monopoly-pricing power. d. All of the above are correct.

Question

Business

Delilah Shields

3 June, 07:46

A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if a. adults buy more popcorn than children. b. the cost of showing a movie to children is less than the cost of showing a movie to adults. c. it has some degree of monopoly-pricing power. d. All of the above are correct.

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Lyric Hanna · Answer 1

It has some degree of monopoly-pricing power.

Explanation:

Pricing discrimination can be defined as a selling strategy in which producers set different prices for a particular product. Pricing discrimination can also be described as a method used by organizations to set the amount a product will be sold to different group of customers.

Pricing discrimination enables an organization to increase their sales and maximise profit, this is because this type of selling approach persuades customers to purchase large quantities of goods and services.