Disneyland price discriminates by charging lower entry fees for children than adults and for local residents than for other visitors. Why does it not have a resale problem?
Answer to relevant QuestionsOn July 12, 2012, Hertz charged $ 126.12 to rent a Nissan Altima for one day in New York City, but only $ 55.49 a day in Miami. Is this price discrimination? Explain.A firm charges different prices to two groups. Would the firm ever operate where it was suffering a loss from its sales to the low-price group? Explain. How would the analysis in Q& A 10.2 change if MC = 7? Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is p = 120 – 2q, where q is the number of rounds of golf that he plays per year. The manager of the ...Each week, a department store places a different item of clothing on sale. Give an explanation based on price discrimination for why the store conducts such regular sales.
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