Nick and Teresa are debating the pricing strategy of several airlines. Nick argues, "When airlines restrict discounted tickets to people who book well in advance and stay over on a Saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay." However, Teresa says, "The airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts. Economists generally agree with Eric or Kate?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Nick and Teresa are debating the pricing strategy of several airlines. Nick argues, "When airlines restrict discounted tickets to people ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
False Value Hardware began 2018 with a credit balance of $23,000 in the allowance for sales returns account (i. e., the estimated return liability). Sales and cash collections from customers during the year were $680,000 and $720,000, respectively.
Answers (1)
All states withhold state income taxes. true false
Answers (1)
For the year ended December 31, 2016, Norstar Industries reported net income of $655,000. At January 1, 2016, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2016: Apr.
Answers (1)
What can be a benefit of using interviews to select employees to hire
Answers (1)
Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $375,000 at the end of eight years from now. The sinking fund is expected to earn 7% interest.
Answers (1)
New Questions in Business
A company has a defined benefit pension plan for its employees. On December 31, year one, the accumulated benefit obligation is $45,900, the projected benefit obligation is $68,100, and the fair value of the plan assets is $62,000.
Answers (2)
Which type of workplace culture emphasizes the development of new skills? a. achievement-based b. adaptive-based c. involvement-oriented d. consistency-oriented
Answers (2)
Jones Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,240 and the other, $1,570. Jones sold one of the items during the year.
Answers (1)
The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages.
Answers (1)
Employers bond employees who handle cash receipts because fidelity bonds reduce the possibility of employing dishonest individuals and Deter dishonesty by making employees aware that insurance companies may investigate and prosecute dishonest acts.
Answers (1)