As a manager of a chaln of movle 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= 16 - 0.002Q 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 First degree price discrimination O Block pricing • Third degree price discrimination O Second degree price discrimination What price should you charge on weekends?

ENGR.ECONOMIC ANALYSIS
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As a manager of a chaln of movle theaters that are monopolles 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 movle
theaters. On weekends, the Inverse demand function is P= 25 - 0.001Q, on weekdays, It is P= 16 - 0.002Q 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 movlegoer in your market watches a movie only once).
What type of pricing strategy should you consider in this case?
First degree price discrimination
O Block pricing
Third degree price discrimination
Second 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.
%24
Transcribed Image Text:As a manager of a chaln of movle theaters that are monopolles 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 movle theaters. On weekends, the Inverse demand function is P= 25 - 0.001Q, on weekdays, It is P= 16 - 0.002Q 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 movlegoer in your market watches a movie only once). What type of pricing strategy should you consider in this case? First degree price discrimination O Block pricing Third degree price discrimination Second 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. %24
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