Clients to live theaters, If Live Theaters charges one

Clients to live theaters

Assignment Help Business Economics

Reference no: EM138703

Q. 1. Clients to Live Theaters, Inc. can be partitioned into 2 groups: seniors and everyone else. The converse demand curves for every of the two groups are given below. The marginal cost (which equals the average variable cost) of serving an additional patron, either senior or everyone else, is equal to $4. Fixed costs are equal to $1000.

Ps = 80 - Qs
Pe = 100 - 2Qe

Where Ps and Pe denote, respectively, the prices charged to seniors and everyone else and Qs and Qe denote the number of seniors and the number of all other customers served.

a. Illustrate Live Theaters with total revenue function? Illustrate its total cost function? Its total profits occupation?

b. What are the profit maximizing levels of price and output if Live Theaters, Inc. engages in 3rd degree price discrimination? Show that MRe = MRs = MC

c. Illustrate the profits associated with this option?

d. If Live Theaters charges one price to all patrons, what would it be? Illustrate how many customers would it serve? Explain what would be its profits?

Reference no: EM138703

Questions Cloud

Original owners must sell their used cars : Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it.

Continue to operate at a loss in short run : Explain the Miami plant which is closed or continue to operate at a loss in short run.

Compute demand of price elasticity : Compute demand of price elasticity of for natural gas sold to the US.

Run the lab_03_01.sql script : Run the lab_03_01.sql script in the attached file to create the SAL_HISTORY table. Display the structure of the SAL_HISTORY table.

Clients to live theaters : If Live Theaters charges one price to all patrons, what would it be. Illustrate how many customers would it serve.

Wage rate for autoworkers : explain why an increase in the wage rate for autoworkers will generate more of a negative employment response in the long run than in the short run

Camera shop has exhausted : In a current newspaper article you also read that The Camera Shop has exhausted its undertaking capital and that no new investors

Highest possible total revenue : What is the highest possible total revenue that the team can hope to collect

Hrm trends and draw out several common themes : Analyse one trend for how it may influence organisations, including benefits and drawbacks. Assess how the trend adds value and/or heightens the strategic involvement of HR within organisations.

User Account

All Pages