5. Assume a movie theater that has a fixed cost of 500 dollars regardless of how manypeople come to the movie if it is open. There exists two types of customers: studentsand adults with demand functions ys =220 – 40p, and ya = 140 – 20pa.• If the movie theater can discriminate the customers by checking student id cards, whatwill be the prices for students and for the adults if the movie theater maximizes profit?• What will be the total profit?

Profit maximization is a process business firms undergo to ensure the best output and price levels…

5. Assume a movie theater that has a fixed cost of 500 dollars regardless of how many people come to the movie if it is open. There exists two types of customers: students and adults with demand functions ys = 220 – 40ps and ya = 140 – 20pa. •If the movie theater can discriminate the customers by checking student id cards, what will be the prices for students and for the adults if the movie theater maximizes profit? • What will be the total profit?

5. Assume a movie theater that has a fixed cost of 500 dollars regardless of how many people come to the movie if it is open. There exists two types of customers: students and adults with demand functions ys = 220 – 40ps and ya = 140 – 20pa. •If the movie theater can discriminate the customers by checking student id cards, what will be the prices for students and for the adults if the movie theater maximizes profit? • What will be the total profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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