As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P-25-0.0010, on weekdays, it is P-20-0.002Q You acquire legal rights from movie producers to show their films at a cost of $30,000 per movie, plus a $3.00 "royalty for each moviegoer entering your theaters (the average moviegoer in your market watches a movie only once). What type of pricing strategy should you consider in this case? Second degree price discrimination OFirst degree price discrimination Third degree price discrimination Block pricing

As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P-25-0.0010, on weekdays, it is P-20-0.002Q You acquire legal rights from movie producers to show their films at a cost of $30,000 per movie, plus a $3.00 "royalty for each moviegoer entering your theaters (the average moviegoer in your market watches a movie only once). What type of pricing strategy should you consider in this case? Second degree price discrimination OFirst degree price discrimination Third degree price discrimination Block pricing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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