Ticket Price, Cost ($)10800D₁ = Dx+DAMC = ATCMRT202838100Adult TicketsDK64MC = ATCMRKChildren'sTickets20201. The Figure above describes demand and cost conditions facing the Salinas Cinema-Plex.Note that marginal costs are constant ($). The demand for Cinema-Plex movie tickets byadult patrons is given by DA and by child patrons Dk.a) Calculate total revenue from ticket sales IF the Cinema-Plex did NOT practice 3rddegree price discrimination, but rather charged a single price to adult and childpatrons.b) Calculate the total number of tickets sold if the Cinema-Plex DID practice 3rddegree price discrimination.c) Calculate the change in consumer surplus (CS) received by adult patrons if theCinema-Plex shifted from a single price to a 3rd degree price discriminationregime.d) How much (economic) profit does the Cinema-Plex stand to gain by engaging in3rd degree price discrimination?

Answered: Image /qna-images/answer/281c7688-9122-4611-a4ec-253eb61e6565.jpg

Answered: Ticket Price, Cost ($) 10 8 00 D₁ =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Only typed answer
Please explain correctly and clearly.
A tool rental company determines that it will rent 500 jackhammers per day at a daily rental fee of $30 per jackhammer. For each $1 increase in rental price, 10 fewer jackhammers will be rented. What rental price maximizes revenue?
1. A company has estimated that its total cost (TC) function is: TC = 12,000 + 60Q Where Q refers to quantity. The marketing department of this company is unable to estimate the demand function for the company but believes the price elasticity for the company's products is (-)4. Given this information, calculate the profit maximising price
Solve this asap
The demand curve for product a is given as Q = 2000 - 20P. a. How many units will be sold at $10? b. At what price would 2,000 units be sold? 0 units? 1,500? c. Write equations for total revenue and marginal revenue (in terms of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue? e. What is the point elasticity at a price of $70? f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? g. At what price would elasticity be unitary?
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Problem 06-07 (algo) ADVAN CED ANALYSIS Currently, at a price of $0.50 each, 250 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $0.50 to $1 is unit-elastic (Es= 1). In the long run, a price increase from $0.50 to $1 has an elasticity of supply of 1.50. (Hint: Apply the midpoint approach to the elasticity of supply.) Instructions: Enter your answers as a whole number. a. How many popsicles will be sold each day in the short run if the price rises to $1 each? popsicles b. How many popsicles will be sold per day in the long run if the price rises to $1 each? popsicles
Assume perfect competition takes place in the market for hotel rooms. The current market equilibrium price for a standard room is RM300 per night. c. Show the loss in net benefits from hotel use resulting from the tax.
The demand function for product is p = -4q+400 and the average cost for producing q units 500 is c = 37q + 40 + where p= price, and q= quantity demand. 2 9 1. 2. 3. 4. Compute the point elasticity of demand and find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results. What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.
devrat
help

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS