EBK EXPLORING ECONOMICS
EBK EXPLORING ECONOMICS
7th Edition
ISBN: 9780100544772
Author: Sexton
Publisher: YUZU
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Chapter 13, Problem 2P
To determine

(a)

To indicate:

The type of barrier formed in the monopoly.

To determine

(b)

To indicate:

The type of barrier formed in the monopoly.

To determine

(c)

To indicate:

The type of barrier formed in the monopoly.

To determine

(d)

To indicate:

The type of barrier formed in the monopoly.

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A movie theater is showing two different movies: a Hollywood blockbuster (with 100 customers willing to pay $10 for a ticket, and 100 willing to pay $8) and an independent film that attracts 50 film buffs, willing to pay $20 each. Marginal costs are zero and neither movie can fill theater capacity. What is the theater's maximum profit if it cannot price discriminate (it must charge the same price for both movies) and if it can price discriminate (it may charge different prices for different movies)?   a. $2,000; $2,600     b. $1,500; $2,100     c. $1,500; $2,000
A movie theater is showing two different movies: a Hollywood blockbuster (with 100 customers willing to pay $10 for a ticket, and 100 willing to pay $8) and an independent film that attracts 50 film buffs, willing to pay $20 each. Marginal costs are zero and neither movie can fill theater capacity. What is the theater's maximum profit if it cannot price discriminate (it must charge the same price for both movies) and if it can price discriminate (it may charge different prices for different movies)?   a. $2,000; $2,600     b. $1,500; $2,100     c. $1,500; $2,000
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