Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the time of attendance and willingness to pay for a ticket. Customer Maximum willingness Time of attendance to pay Brandon $7 matinee Tyler $30 evening Austin $10 evening Alexis $8 matinee Ashley $20 evening Emily $15 matinee What should the theater charge for evening tickets? What should the theater charge for matinee tickets? $
Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the time of attendance and willingness to pay for a ticket. Customer Maximum willingness Time of attendance to pay Brandon $7 matinee Tyler $30 evening Austin $10 evening Alexis $8 matinee Ashley $20 evening Emily $15 matinee What should the theater charge for evening tickets? What should the theater charge for matinee tickets? $
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter6: Statistical Inference
Section: Chapter Questions
Problem 29P: Carpetland salespersons average 8,000 per week in sales. Steve Contois, the firms vice president,...
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Question
![Suppose that a small-town theater has six potential customers and is
looking to implement price discrimination depending on when
customers want to attend. Suppose the marginal cost of serving an
additional customer is $1.50. The data provide information about the
time of attendance and willingness to pay for a ticket.
Customer
Maximum willingness
Time of
attendance
to pay
Brandon
$7
matinee
Tyler
$30
evening
Austin
$10
evening
Alexis
$8
matinee
Ashley
$20
evening
Emily
$15
matinee
What should the theater charge for evening tickets?
What should the theater charge for matinee tickets?
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F747ecc27-44b3-4a0e-97bd-0c25776c3de0%2F686882de-7ae5-491e-b0fc-42c3674df422%2F92xdj2e_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that a small-town theater has six potential customers and is
looking to implement price discrimination depending on when
customers want to attend. Suppose the marginal cost of serving an
additional customer is $1.50. The data provide information about the
time of attendance and willingness to pay for a ticket.
Customer
Maximum willingness
Time of
attendance
to pay
Brandon
$7
matinee
Tyler
$30
evening
Austin
$10
evening
Alexis
$8
matinee
Ashley
$20
evening
Emily
$15
matinee
What should the theater charge for evening tickets?
What should the theater charge for matinee tickets?
$
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