Disneyland price discriminates because
A) everyone loves going to The Happiest Place on Earth, so they'll pay whatever Disneyland wants to charge.
B) children are cheaper to service, so Disneyland can charge lower prices for a children's ticket.
C) only a certain number of people can get into Disneyland at any given time, limiting supply, and the market demand curve is nearly completely inelastic.
D) local residents likely wouldn't go to the park at prices Disneyland can charge for tourists, which would reduce Disneyland's profits.
Correct Answer:
Verified
Q3: Firms price discriminate to maximize total revenue.
Q7: Why do firms engage in price discrimination?
A)
Q8: Without price discrimination, a firm
A)faces a tradeoff
Q9: Which of the following conditions must be
Q12: If a firm faces a flat demand
Q13: When firms price discriminate, they turn _
Q15: Charging a higher price for a motel
Q15: Which of the following conditions must be
Q16: All firms can increase profits using price
Q19: At many municipal golf courses,local residents pay
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents