Scenario 15-9
Suppose executives at an art museum know that 100 adults are willing to pay $12 for admission to the museum on a weekday. Suppose the executives also know that 200 students are willing to pay $8 for admission on a weekday. The cost of operating the museum on a weekday is $2,000.
-Refer to Scenario 15-9. How much profit will the museum earn if it engages in price discrimination?
A)$800
B)$1,200
C)$1,600
D)$2,800

Question

Quizplus · Accepted Answer

The museum will earn $800 in profit if it engages in price discrimination. The museum will earn $1,200 from the adults and $1,600 from the students, for a total of $2,800. The cost of operating the museum is $2,000, so the museum will earn $800 in profit.

Scenario 15-9 Suppose Executives at an Art Museum Know That 100 Adults