Disneyland price discriminates by charging lower entry fees for children than ad

Question

Disneyland price discriminates by charging lower entry fees for children than adults and for local residents than for other visitors. Why does it not have a resale problem? Disney does not have a resale problem between adults and children (and between local residents and other visitors) because 0 A, O B. O C. O D. ( E. the marginal cost of another visitor is almost zero. different types of customers cannot be identified. children and other visitors have no market power. selling entry passes has low transaction costs. children's tickets are color coded, and adults are hesitant to buy scalped tickets

Explanation / Answer

Ans:

Option C

Children and other visitors have no market power

The market power plays a key role in price discrimination and a perfectively competitive firm can not adopt price discrimination strategies.In this case disneyland exercises market power .

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