Most movie theatres charge different prices to different groups of customers for movie admission but not on movie popcorn. Which of the following is a reason for this?
A) because the markup on movie popcorn is very high and movie theatres do not want to forego this source of revenue
B) because the demand for popcorn is very high relative to the demand for movie admissions
C) because it is easier to limit resale in movie admissions but not in popcorn
D) because the cost of operating a concession stand in a movie theatre is very high compared to the cost of showing a movie

Question

Quizplus · Accepted Answer

Movie theatres can easily limit resale of movie tickets as they are generally purchased for a specific time and date, whereas popcorn can be easily resold or shared among multiple people. Therefore, to prevent losses due to resale, theatres charge different prices for movie tickets for different groups of customers but keep the price of popcorn constant. The other options, such as high markup on popcorn or high demand for popcorn, may also be contributing factors, but the limitation on resale is the primary reason.

Most Movie Theatres Charge Different Prices to Different Groups of Customers