DaisyCo is an amusement park company using geographical segment pricing to increase profits. It charges different prices for its park entrance tickets in different countries. Marginal costs are identical in the two countries. After investigating the demand in country A and in country B, DaisyCo decided to charge a higher price in country B. which of the following statements is consistent with this decision? O Consumers in country A have a more elastic demand for amusement parks than consumers in country B O None of the other answers O DaisyCo has lower fixed costs in country B as compared to country A O There are many similar amusement parks in country B, whereas there is only little competition in country A O Consultants concluded that the demand for amusement parks is more elastic in country B than in country A
DaisyCo is an amusement park company using geographical segment pricing to increase profits. It charges different prices for its park entrance tickets in different countries. Marginal costs are identical in the two countries. After investigating the demand in country A and in country B, DaisyCo decided to charge a higher price in country B. which of the following statements is consistent with this decision? O Consumers in country A have a more elastic demand for amusement parks than consumers in country B O None of the other answers O DaisyCo has lower fixed costs in country B as compared to country A O There are many similar amusement parks in country B, whereas there is only little competition in country A O Consultants concluded that the demand for amusement parks is more elastic in country B than in country A
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter14: Indirect Price Discrimination
Section: Chapter Questions
Problem 7MC
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