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16 September, 10:02

Scenario 15-9 suppose executives at an art museum know that 100 adults are willing to pay $12 for admission to the museum on a weekday. suppose the executives also know that 200 students are willing to pay $8 for admission on a weekday. the cost of operating the museum on a weekday is $2,000. refer to scenario 15-9. how much additional profit will the museum earn if it engages in price discrimination compared to charging each customer $8 for admission?

a. $0

b. $200

c. $400

d. $800

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  1. 16 September, 10:17
    0
    The museum will earn $400 more. If they charged everyone $8 then both the 100 adults and the 200 students would buy admission. By discriminating in price they are able to charge the adults $4 more each. $4 x 100 = $400.
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