Movie theatres charge different prices to different groups of people based on the differing marginal costs that exist from group to group.

Question

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Movie theaters typically charge different prices to different groups of people (such as students, seniors, or military personnel) based on a pricing strategy known as price discrimination, which aims to maximize revenue by charging different prices to different segments of consumers, not based on differing marginal costs.

Movie Theatres Charge Different Prices to Different Groups of People