Question 1: Some tennis clubs charge an up-front fee to join and per-hour charge for court time. Others do not charge membership fee but charge a higher per-hour fee for court time. Consider clubs in two different locations. One is located in a suburban area where the residnets tned to be of similar age, income, and occupation. The other is in the city with a more diverse population. Which of the locations is more likely to charge a membership fee? Explain.
Question 2: Consider three firms: a shoe store at the mall, an automoble dealership, and a house painting firm.
a. Which firm would you expect to engage in the most price discrimination? Why?
b. How has the Internet changed the pricing policies of these businesses?