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 forgo 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

The reason most movie theatres charge different prices to different groups of customers for movie admission but not on movie popcorn is because it is easier to limit resale in movie admissions but not in popcorn. This means that the theatre can control who gets the discounted tickets (such as seniors or students) and limit the number of people who benefit from the discount. However, with popcorn, anyone can buy it regardless of age or status, making it harder for the theatre to limit who gets the special pricing. Additionally, the markup on movie popcorn is typically very high, which means that the theatre would not want to forgo this source of revenue by offering discounts.

Most Movie Theatres Charge Different Prices to Different Groups of Customers