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Llanis Llanis
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6 years ago
A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm. Those who check in early are much more likely to use the hotel's pool. Explain why this price difference may not be price discrimination.
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Microeconomics

Microeconomics


Edition: 6th
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#1
6 years ago
The marginal cost of providing a hotel stay to those who check in early may be greater than the marginal cost of providing a stay to those who check in after 5:00 pm. Those who check in early are more likely to use more towels, soap, shampoo, bathing caps, etc., than those who arrive after 5:00 pm. The difference in costs may explain the hotel price differences.
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