Author Question: Cruise liners offer last minute deals because a. The marginal cost is higher than the marginal ... (Read 60 times)

s.tung · **on:** Jul 1, 2018

Cruise liners offer last minute deals because
a. The marginal cost is higher than the marginal revenue since fixed costs are sunk
b. The marginal costs of an additional passenger are very low at that point and companies gain by lowering prices
c. The average cost of an additional passenger is very low at that point and companies gain by lowering prices
d. All of the above

Question 2

Many bars close to campuses have started offering cheaper beer to consumers with a student IDs. These bars are using
a. Direct price discrimination
b. Indirect price discrimination
c. Decreasing returns to scale
d. None of the above