You are the manager of the local movie theatre in a small town. Running a movie has a fixed cost of $2,000, but selling an extraticket (i.e. accommodating an extra viewer) has zero marginal cost. Below are the demand schedules for your two types ofcustomers:Price $AdultsTeens and Seniors10509100820072005063001005350150440020034003004003001400300If you are to charge a single price (i.e., if price discrimination is prohibited), what price would you set for a ticket to maximize profit?How much profit do you make?Price = $Profit = $If you were allowed to price-discriminate, what price would you charge for an adult ticket? For senior/teen ticket? How much profitdo you make?Price for adults = $Price for seniors/teens= $Profit = $

Profit refers to the revenue that firms or sellers earn over and above the total costs that they…

You are the manager of the local movie theatre in a small town. Running a movie has a fixed cost of $2,000, but selling an extra ticket (i.e. accommodating an extra viewer) has zero marginal cost. Below are the demand schedules for your two types of customers: Price $ Adults Teens and Seniors 10 50 100 200 7 200 50 300 100 5 350 150 4 400 200 3 400 300 2 400 300 1 400 300 If you are to charge a single price (i.e., if price discrimination is prohibited), what price would you set for a ticket to maximize profit? How much profit do you make? Price = $ Profit = $ If you were allowed to price-discriminate, what price would you charge for an adult ticket? For senior/teen ticket? How much profit do you make? Price for adults = s Price for seniors/teens= $ Profit = $

You are the manager of the local movie theatre in a small town. Running a movie has a fixed cost of $2,000, but selling an extra ticket (i.e. accommodating an extra viewer) has zero marginal cost. Below are the demand schedules for your two types of customers: Price $ Adults Teens and Seniors 10 50 100 200 7 200 50 300 100 5 350 150 4 400 200 3 400 300 2 400 300 1 400 300 If you are to charge a single price (i.e., if price discrimination is prohibited), what price would you set for a ticket to maximize profit? How much profit do you make? Price = $ Profit = $ If you were allowed to price-discriminate, what price would you charge for an adult ticket? For senior/teen ticket? How much profit do you make? Price for adults = s Price for seniors/teens= $ Profit = $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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