Title: The Athenian Theatre sells tickets for the same play at different prices: a lower price to those who ... Post by: Ilovebacon22 on Oct 10, 2019 The Athenian Theatre sells tickets for the same play at different prices: a lower price to those who opt for the seats at the back of the theatre and a higher price for those who purchase seats in the front, around the stage. Which of the following statements is true? ▸ The theatre practices first-degree price discrimination by setting prices based on willingness to pay. ▸ Charging two different prices is an effective way to avoid an excess demand for play tickets; the higher price lowers quantity demanded to some extent. ▸ This is an example of product differentiation but not price discrimination. ▸ Since the cost of producing the play does not change with the seating configuration, this is evidence of price discrimination based on market segmentation. Title: The Athenian Theatre sells tickets for the same play at different prices: a lower price to those who ... Post by: peaceout3000 on Oct 10, 2019 Content hidden
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