Price Discrimination In Movie Theaters

Question 1.
In order to practices price discrimination, some market power are required. In this case, most of the movie theaters have the market power to price discriminate since the movie theaters market is oligopoly. Take Hong Kong as an example, there are only a few companies providing movie viewing service so that the movie theaters have enough market power to practices price discrimination. They provide same movie viewing service to customers of different age with different price while the cost is the same. For instance, movie theaters would like to sell cheaper to kids, students and elderly while adult are charged normally, which is an example of age price discrimination.

Question 2.
In order to practices price discrimination, some

In long run, there will be more firm join in the market or the current firm expand their production scale, which increase the supply of the catering service and make the price of the food lower. At the same time, the demand of the input like the ingredients will increase, which means the price of the ingredients will increase and make the cost of production higher. Having less revenue and higher cost of production, the firms in market of restaurant will no longer earn economic profit in long run.

Question 7.
I think immunizations is an example of positive externality. During immunization, the people who have injected have lower chance to be get infected from some virus. So, the people around the one who have injected don’t have to worry about get infected by them, which is a benefit to them. Overall, when the government or an individual would like to implement immunization, it would bring an positive impact on the bystander -people around the one who injected, which is an example of positive externality. That is the reason why I would consider the immunization is an example that generates positive externalities.

Question

When the electric company use this method to generate electricity, they have to burn the coal, which will emiss a lot of carbon. Thus, the air will be polluted by doing this activities. This would impact all the creatures like human adversely. So, It is no doubt that it harms all the people when the electric company tends to use this method to generate energy. Knowing that coal-burning electricity generation contains a negative impact, there is no doubt that it should be considered as an example of negative