The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p₂ cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁=170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: q2-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, 9₁+92, and are given by the following total cost function C(q₁+9₂)=(9₁+9₂) ². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. If this is the case, then how much will the movie theater charge to domestic students (p.)? How much will the movie theater charge to international students (P₂)? Note: You should round all of your answers below to the second decimal point.
The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p₂ cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁=170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: q2-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, 9₁+92, and are given by the following total cost function C(q₁+9₂)=(9₁+9₂) ². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. If this is the case, then how much will the movie theater charge to domestic students (p.)? How much will the movie theater charge to international students (P₂)? Note: You should round all of your answers below to the second decimal point.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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