Suppose there are 800 regular Harry Potter fans and 200 fanatical Hary Potter fans wishing to attend the next theatre production of Harnry Potter. The theatre has two classes of seating: ordinary seating and premium seating. The willingness-to-pay of each type of theatre-goer for the two dlasses of seating, as well as the marginal cost per customer for providing each class of seating, are summarized in the table below: Ordinary Seats Premium Seats $100 $160 Willingness-to-pay: Regular Harry Potter Fan Willingness-to-pay: Fanatical Harry Potter Fan Marginal cost per customer $40 $140 $300 $120 Suppose the concert organiser is considering selling the two dasses of seats but cannot identify between regular and fanatical fans using observable characteristics. Which of the following is correct? a) The organiser should charge $100 per ticket for both ordinary and premium seats. b) The organiser should charge $160 per ticket for ordinary seats, and $300 per ticket for premium seats. c) The organiser should charge $100 per ticket for ordinary seats, and $300 per ticket for premium seats. d) The organiser should charge $100 per ticket for ordinary seats, and $260 per ticket for premium seats. e) The organiser should charge $140 per ticket for ordinary seats, and $300 per ticket for premium seats.
Suppose there are 800 regular Harry Potter fans and 200 fanatical Hary Potter fans wishing to attend the next theatre production of Harnry Potter. The theatre has two classes of seating: ordinary seating and premium seating. The willingness-to-pay of each type of theatre-goer for the two dlasses of seating, as well as the marginal cost per customer for providing each class of seating, are summarized in the table below: Ordinary Seats Premium Seats $100 $160 Willingness-to-pay: Regular Harry Potter Fan Willingness-to-pay: Fanatical Harry Potter Fan Marginal cost per customer $40 $140 $300 $120 Suppose the concert organiser is considering selling the two dasses of seats but cannot identify between regular and fanatical fans using observable characteristics. Which of the following is correct? a) The organiser should charge $100 per ticket for both ordinary and premium seats. b) The organiser should charge $160 per ticket for ordinary seats, and $300 per ticket for premium seats. c) The organiser should charge $100 per ticket for ordinary seats, and $300 per ticket for premium seats. d) The organiser should charge $100 per ticket for ordinary seats, and $260 per ticket for premium seats. e) The organiser should charge $140 per ticket for ordinary seats, and $300 per ticket for premium seats.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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