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
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Chapter1: Making Economics Decisions
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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
Transcribed Image Text: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
What type of pricing strategy should you consider in this case?
O Second degree price discrimination
O First degree price discrimination
O Third degree price discrimination
O Block pricing
What price should you charge on weekends?
Instructions: Enter your response rounded to two decimal places.
$
What price should you charge on weekdays?
Instructions: Enter your response rounded to two decimal places.
4
Transcribed Image Text:What type of pricing strategy should you consider in this case? O Second degree price discrimination O First degree price discrimination O Third degree price discrimination O Block pricing What price should you charge on weekends? Instructions: Enter your response rounded to two decimal places. $ What price should you charge on weekdays? Instructions: Enter your response rounded to two decimal places. 4
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