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
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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?
$
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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