Can Table 12.1 be modified so that the movie theater in Solved Problem 12.1 does not earn

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Can Table 12.1 be modified so that the movie theater in Solved Problem 12.1 does not earn more by perfectly price discriminating than from charging a single price? What changes to the table would increase the extra profit from perfectly price discriminating?

Table 12.1

(a) No Extra Customers from Price Discrimination

Profit from 20 Senior Citizens Profit from 10 College Students Total Profit $150 Pricing Uniform, $5 Uniform, $10 Price

(b) Extra Customers from Price Discrimination

Profit from 10 College Students Profit from 5 Senior Citizens Pricing Total Profit Uniform, $5 Uniform, $10 $50 $25 $75

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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