question archive QUESTION 2 Translink is the operator of Brisbane's public transport network
QUESTION 2 Translink is the operator of Brisbane's public transport network
Subject:BusinessPrice: Bought3
QUESTION 2 Translink is the operator of Brisbane's public transport network. Every morning approximately 70,000 people catch a Translink bus. These trips occur mainly in “peak hour," between 7am and 9am. To pay for the bus, customers can either purchase a paper ticket or utilise an electronic "Go Card.” Fares when using Go Cards are approximately 35% cheaper than purchasing a paper ticket. Which of the following statements are true: Translink is price discriminating between paper tickets and Go Card fares. Translink is using first degree price discrimination between paper tickets and Go Card fares. The decision to price discriminate will not allow translink to capture more consumer surplus. Translink should not price discriminate as it does not have pricing power.
