"Kids eat free" in a fast food restaurant is an example of

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"Kids eat free" is an example of third-degree price discrimination because the restaurant is charging different prices to different groups (adults and kids) based on their willingness to pay. Adults are assumed to have a higher willingness to pay than kids, so the restaurant charges them a higher price. This allows the restaurant to maximize its profits by charging different prices to different groups without losing customers from either group.

"Kids Eat Free" in a Fast Food Restaurant Is an Example