A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if
A)adults buy more popcorn than children.
B)the cost of showing a movie to children is less than the cost of showing a movie to adults.
C)it has some degree of monopoly-pricing power.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Price discrimination requires some degree of monopoly-pricing power to set different prices for different groups based on their willingness to pay.

A Movie Theater Can Increase Its Profits Through Price Discrimination