Title: Plato Playhouse, a theatre company in the university town of Wegg, caters to two groups ...
Post by: banggedung on Feb 28, 2019
Figure 16-2
students and the non-student population.
Figure 16-2 shows the demand curves for the two groups of customers.
Refer to Figure 16-2. Suppose Plato Playhouse price discriminates. Which of the following statements is true?
• By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby increasing economic efficiency.
• By charging two different prices, the theatre company essentially allows those willing to pay higher prices to subsidize those who are not.
• By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby improving equity.
• Plato Playhouse will earn higher profits if it charges a single price—an average of the two prices— instead of charging two different prices to the two different groups of customers.
students and the non-student population.
Figure 16-2 shows the demand curves for the two groups of customers.
Refer to Figure 16-2. Suppose Plato Playhouse price discriminates. Which of the following statements is true?
• By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby increasing economic efficiency.
• By charging two different prices, the theatre company essentially allows those willing to pay higher prices to subsidize those who are not.
• By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby improving equity.
• Plato Playhouse will earn higher profits if it charges a single price—an average of the two prices— instead of charging two different prices to the two different groups of customers.
Title: -2Plato Playhouse, a theatre company in the university town of Wegg, caters to two groups ...
Post by: Cele_1015 on Feb 28, 2019
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