As a monopolist, the movie theater faces 2 groups of custome…

As a monopolist, the movie theater faces 2 groups of customers, which it can easily distinguish by checking if they have student ID. Student groups have a lower willingness to pay for a movie than the non-student group. Therefore, the monopolist charges different prices to groups of movie consumers with different demands. In this case, this type of price discrimination is: ________________________________

_______________occurs when individuals and groups spend reso…

_______________occurs when individuals and groups spend resources to influence public policy in the hope of redistributing (transferring) income from others to themselves. Economist Gordon Tullock has made the point that it is individually rational but socially wasteful.