QUESTION 2 2 points Save Answer Palace Cinemas is a cinema chain operating in Brisbane and other cities of Australia. They offer a variety of films, including new films, classics and documentaries. Currently ticket prices are the same, regardless of the type of film. During peak hour (between 7pm and 9pm), tickets are approximately 15% more expensive due to high demand Which of the following statements are true: If Palace Cinema knows the demand for documentaries is inelastic during peak period, they can easily use first degree price discrimination. If Palace Cinema decided to offer "first class" and "second class" tickets to patrons seeing documentaries, they would be third degree price discriminating. Palace Cinema is currently implementing peak load pricing. Palace Cinema should raise classic film ticket prices if it finds out that demand for classic films is elastic. QUESTION 3 3 points Save Answer The University of Memesland (UM) and Memesland University of Technology (MUT) are two large universities in Australia that provide online courses to students. Recently they have faced new, international competition, such as the American low-cost university, Horvord. Horvord specialises in providing online courses at a discount to students if they purchase many courses with Horvord. Select the item from the list provided to make the following statements true. When compared to UM and MUT, Horvord could be argued to be engaging in 1. first degree price discrimination 2. second degree price discrimination If UM and MUT both decided to choose a strategy that results in significant losses for both of 3. third degree price discrimination them, they are likely facing a 4. peak load pricing For statement 2 above, if UM and MUT follow this strategy resulting in significant losses for 5. pricing power both of them, it would have resulted in them both playing their strategy. 6. arbitrage ? 7. inefficient 8. collusion 9. dominant 10. dominated 11. prisoner's dilemma 12. efficient