I need help figuring if its the top or bottom option. So, why do firms practice second degree price discrimination? Why not charge aset price for each ticket?MaxCharging a single price for every ticket is more profitable, but firms get pressure from their customers to offer group pricing-like the package prices for the concert.Firms can earn greater profits practicing second degree price discrimination compared to charging a single price per ticket.

Price discrimination refers to the process of charging different price for the same good in…

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Economics

So, why do firms practice second degree price discrimination? Why not charge a set price for each ticket?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 3E

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Question

I need help figuring if its the top or bottom option.

So, why do firms practice second degree price discrimination? Why not charge a
set price for each ticket?
Max
Charging a single price for every ticket is more profitable, but firms get pressure from their customers to offer group pricing
-like the package prices for the concert.
Firms can earn greater profits practicing second degree price discrimination compared to charging a single price per ticket.

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