QuestionJune 7, 2025

A firm charges different groups of customers different prices in order to increase revenue and cost Senior citizen discounts are an example of this type of pricing. decrease cost and increase profit. Student discounts are an example of this type of pricing. increase revenue but not profit. Higher holiday airfares are an example of this type of pricing. increase revenue and profit Lower afternoon movie prices are an example of this type of pricing.

A firm charges different groups of customers different prices in order to increase revenue and cost Senior citizen discounts are an example of this type of pricing. decrease cost and increase profit. Student discounts are an example of this type of pricing. increase revenue but not profit. Higher holiday airfares are an example of this type of pricing. increase revenue and profit Lower afternoon movie prices are an example of this type of pricing.
A firm charges different groups of customers different prices in order to
increase revenue and cost Senior citizen discounts are an example of this type of pricing.
decrease cost and increase profit. Student discounts are an example of this type of pricing.
increase revenue but not profit. Higher holiday airfares are an example of this type of pricing.
increase revenue and profit Lower afternoon movie prices are an example of this type of pricing.

Solution
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Answer

Price discrimination is used to increase revenue and/or profit by charging different prices to different customer groups. Explanation 1. Identify Pricing Strategy The firm uses price discrimination, charging different prices to different groups to maximize revenue and profit. 2. Analyze Examples Senior citizen discounts aim to increase revenue by attracting more customers. Student discounts decrease costs by filling seats that might otherwise be empty. Higher holiday airfares increase revenue without necessarily increasing profit due to higher demand. Lower afternoon movie prices increase both revenue and profit by attracting more viewers during off-peak times.

Explanation

1. Identify Pricing Strategy<br /> The firm uses price discrimination, charging different prices to different groups to maximize revenue and profit.<br /><br />2. Analyze Examples<br /> Senior citizen discounts aim to increase revenue by attracting more customers. Student discounts decrease costs by filling seats that might otherwise be empty. Higher holiday airfares increase revenue without necessarily increasing profit due to higher demand. Lower afternoon movie prices increase both revenue and profit by attracting more viewers during off-peak times.
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