Price Discrimination. The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows:
Average variable costs for labor and materials are constant at $20 per unit.

Question

Price Discrimination. The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows:
  Average variable costs for labor and materials are constant at $20 per unit.

Quizplus · Accepted Answer

The Answer of Price Discrimination. The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows:
  Average variable costs for labor and materials are constant at $20 per unit.