Question: A coffee shop charges $4 for a regular size white chocolate coffee but only $2.50 for a regular coffee, despite the fact that variable cost
A coffee shop charges $4 for a regular size white chocolate coffee but only $2.50 for a regular coffee, despite the fact that variable cost between the two is almost negligible (under $.1 to add the white chocolate). In effect the shop has price discriminated between two classes of customers, frugal and luxury. This practice is known as
| yield management | ||
| highly illegal | ||
| capacity management | ||
| aggregate planning | ||
| none of the above |
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