Use the following to answer question:
Figure 10.6
-(Figure 10.6) Little Pinehurst Miniature Golf has two types of customers: infrequent players and frequent players. Using a strategy of second-degree price discrimination, Little Pinehurst offers customers the choice of paying $15 per round of miniature golf or $12 per round for a package of 16 rounds. The pricing scheme is _____ for infrequent players but is _____ for frequent players.
A) incentive-compatible; not incentive-compatible
B) not incentive-compatible; not incentive-compatible
C) not incentive-compatible; incentive-compatible
D) incentive-compatible; incentive-compatible

Question

Use the following to answer question:
Figure 10.6 
-(Figure 10.6) Little Pinehurst Miniature Golf has two types of customers: infrequent players and frequent players. Using a strategy of second-degree price discrimination, Little Pinehurst offers customers the choice of paying $15 per round of miniature golf or $12 per round for a package of 16 rounds. The pricing scheme is _____ for infrequent players but is _____ for frequent players.
A) incentive-compatible; not incentive-compatible 
B) not incentive-compatible; not incentive-compatible 
C) not incentive-compatible; incentive-compatible 
D) incentive-compatible; incentive-compatible

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The Answer of Use the following to answer question:
Figure 10.6 
-(Figure 10.6) Little Pinehurst Miniature Golf has two types of customers: infrequent players and frequent players. Using a strategy of second-degree price discrimination, Little Pinehurst offers customers the choice of paying $15 per round of miniature golf or $12 per round for a package of 16 rounds. The pricing scheme is _____ for infrequent players but is _____ for frequent players.
A) incentive-compatible; not incentive-compatible 
B) not incentive-compatible; not incentive-compatible 
C) not incentive-compatible; incentive-compatible 
D) incentive-compatible; incentive-compatible

Use the Following to Answer Question