Charging different prices to afternoon versus evening moviegoers is an example of a monopolist _____
A)decreasing profit.
B)sorting customers by age.
C)separating customers in time.
D)meeting minimum legal requirements.
E)being fair to all groups.

Question

Quizplus · Accepted Answer

Charging different prices to afternoon versus evening moviegoers is an example of a monopolist separating customers in time. This is a pricing strategy based on the time or season of using the product or service, which is used to increase profits. It allows the monopolist to price discriminate and capture more consumer surplus from customers who are willing to pay more for peak hours.

Charging Different Prices to Afternoon Versus Evening Moviegoers Is an Example