1. What type of price discrimination is the cinema pursuing: first, second or third degree? Could it...

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1. What type of price discrimination is the cinema pursuing: first, second or third degree? Could it pursue either of the other two types?

2. If all cinema seats could be sold to adults in the evenings at the end of the week, but only a few on Mondays and Tuesdays, what price discrimination policy would you recommend to the cinema in order for it to maximise its weekly revenue.

3. Would the cinema make more profit if it could charge adults a different price in the afternoon and the evenings?

4. Would you advise that the cinema extend its practice of price discrimination to include other groups? If so, which groups should be targeted?

5. Are there any other advantages, beyond the additional revenues generated, to having more people in the cinema? Are there any disadvantages?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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