Children are charged less than adults for admission to professional baseball games but are charged the same prices as adults at the concession stands. Which of the following conditions of price discrimination explains why this occurs?
A) The seller must have some monopoly power; that is, it must be able to set the product price.
B) The seller must be able to identify buyers by group characteristics such as age or income.
C) Groups must have different elasticities of demand for the product.
D) Concession items could be bought by people in the low-price group and transferred to members of the high-price group.
Correct Answer:
Verified
Q316: Q317: Assume that the owners of the only Q318: Possible reasons for X-inefficiency include the following, Q319: With nonrivalrous consumption, such as in the Q320: Marginal costs of a producer may be Q322: Which of the following conditions is not Q323: If a pure monopolist can price discriminate Q324: Other things equal, in which of the Q325: If a monopolist engages in price discrimination, Q326: Price discrimination is
A)always legal.
B)always illegal.
C)only illegal if
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