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=30-0.002Q, on weekdays, it is P= 22 -0.002 Q. You acquire legal rights from movie producers to show their films at a cost of $30,000 per movie, plus a $3.50 "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? Block pricing O First degree price discrimination O Second degree price discrimination Third degree price discrimination 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. $

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 = 30 -0.002Q; on weekdays, it is P= 22 -0.002 Q. You acquire legal rights
from movie producers to show their films at a cost of $30,000 per movie, plus a $3.50 "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?
O Block pricing
O First degree price discrimination
O Second degree price discrimination
Ⓒ Third degree price discrimination
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.
$
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 = 30 -0.002Q; on weekdays, it is P= 22 -0.002 Q. You acquire legal rights from movie producers to show their films at a cost of $30,000 per movie, plus a $3.50 "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? O Block pricing O First degree price discrimination O Second degree price discrimination Ⓒ Third degree price discrimination 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. $
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