Question

Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price. They are typically distributed via lottery or on a first-come, first-served basis a few hours before the show. Assume that the theater in question does not hold seats in reserve for this purpose, but rather offers rush tickets only for seats not sold before the day of the performance.

Is this an example of price discrimination?

a. No
b. Yes

Answer 1

Yes, this is an example of price discrimination.

A selling tactic known as price discrimination involves charging clients various rates for the same good or service depending on what the vendor believes they can persuade the customer to accept. When a merchant uses pure price discrimination, they charge each consumer the highest price they will agree to.

In reality, it's typically OK. If price discrimination is carried out in violation of antitrust or price-fixing legislation, or if it is done on the basis of race, religion, nationality, or gender, it is prohibited.

Price discrimination results in some customers having to pay more (e.g. people who have to travel at busy times). Because P > MC, these increased costs are probably allocatively inefficient. consumer surplus declines.

To boost profits, businesses use price discrimination. Price discrimination enables businesses to charge wealthy customers a high price while charging the most price-sensitive customers a cheap price because a big market often has many different sorts of customers.

Price discrimination can be divided into three categories:

• first-degree,
• second-degree,  
• third-degree.

The following prerequisites must be met for price discrimination to be legal: The seller must have some degree of control over the product's supply. It takes a monopoly strength like this to differentiate prices. The market should be split into at least two submarkets by the seller (or more).

To know more about price discrimination refer to:  https://brainly.com/question/23342760

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Answer 2

Yes, this is an example of price discrimination.

A selling tactic known as price discrimination involves charging clients various rates for the same good or service depending on what the vendor believes they can persuade the customer to accept. When a merchant uses pure price discrimination, they charge each consumer the highest price they will agree to.

In reality, it's typically OK. If price discrimination is carried out in violation of antitrust or price-fixing legislation, or if it is done on the basis of race, religion, nationality, or gender, it is prohibited.

Price discrimination results in some customers having to pay more (e.g. people who have to travel at busy times). Because P > MC, these increased costs are probably allocatively inefficient. consumer surplus declines.

To boost profits, businesses use price discrimination. Price discrimination enables businesses to charge wealthy customers a high price while charging the most price-sensitive customers a cheap price because a big market often has many different sorts of customers.

Price discrimination can be divided into three categories:

• first-degree,
• second-degree,  
• third-degree.

The following prerequisites must be met for price discrimination to be legal: The seller must have some degree of control over the product's supply. It takes a monopoly strength like this to differentiate prices. The market should be split into at least two submarkets by the seller (or more).

To know more about price discrimination refer to:  brainly.com/question/23342760

#SPJ1