The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:

-SkyMasters has decided to charge two different prices,a high price and low price,based on age.What would be the increase in total revenue the company gains from its practice of price discrimination versus what it would earn if it charged a single price to all customers?
A) $1,300
B) $1,200
C) $650
D) $300
E) $100

Question

The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:
 
-SkyMasters has decided to charge two different prices,a high price and low price,based on age.What would be the increase in total revenue the company gains from its practice of price discrimination versus what it would earn if it charged a single price to all customers?
A) $1,300 
B) $1,200 
C) $650 
D) $300 
E) $100

Quizplus · Accepted Answer

The Answer of The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:
 
-SkyMasters has decided to charge two different prices,a high price and low price,based on age.What would be the increase in total revenue the company gains from its practice of price discrimination versus what it would earn if it charged a single price to all customers?
A) $1,300 
B) $1,200 
C) $650 
D) $300 
E) $100

The Following Table Summarizes Six Potential Customers' Ages and Willingness