Question

Arnold​ Marion, a firstminus year economics student at Fazer​ College, was given an assignment to find an example of price discrimination and present it to his class. When asked for his example Arnold said​ "I went to a Milwaukee Brewers baseball game with my cousin last week. We paid​ $25 each for our seats in left field. My aunt and uncle paid​ $50 each for their​ tickets; they sat five rows behind the first base dugout. This is an example of price discrimination since we paid different prices for the same​ product, and the differences were not due to differences in​ costs." How would​ Arnold's economics instructor assess​ Arnold's example

Answer 1

Answer:

Arnold made a mistake since the $25 seats are not the same product as the $50 seats. It is not the same to be sitting behind the first base dugout or sitting at the end of left field.

Sometimes you can get better seats for the same price as not so good seats, like in a movie theater, but a baseball field is much bigger and the quality of the show (baseball game) varies a lot depending where you are sitting.