Erin and Deidre two residents of Ithaca New York are planning a trip to Boston

Erin and deidre two residents of ithaca new york are

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48) Erin and Deidre, two residents of Ithaca, New York, are planning a trip to Boston. Erin, the salesmanager for a large retailer, has to attend a business meeting. Deidre, a college student onvacation, is planning a leisurely trip to visit friends and relatives. Which of the followingstatements is true?A) An airline that price discriminates will charge Deidre a higher price.B) Since there is no difference in the cost of producing air travel, airlines will not chargedifferent prices to Erin and Deidre.C) An airline that price discriminates will charge Erin a higher price.D) An airline cannot price discriminate because buyers can resell their tickets through theInternet.Answer: C48)Diff: 1Page Ref: 526/526Topic: Yield ManagementLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking14
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49) Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows seniorcitizens to purchase the same item for $75. Is this likely to be a successful price discriminatingstrategy?49)Diff: 2Page Ref: 523/523Topic: Price DiscriminationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking50) Which of the following products allows the seller to identify different groups of consumers(segment the market) and practice price discrimination?50)Diff: 2Page Ref: 523/523Topic: Price DiscriminationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking
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