Define price discrimination-product differentiation

Assignment Help Business Economics

Reference no: EM13802118

Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Your competitor’s movie theater also has stadium seating for all screens and two concessions stands. Remember this is a small to mid-sized city with a small to moderate sized customer base.

A. Price Discrimination:

Define price discrimination. Describe a price discrimination strategy that you could use at your movie theatre (you must come up with a real-world strategy for this answer). How can you possibly earn extra profits by charging some customers a lower price instead of charging all customers a high price?

B. Product Differentiation and Advertising:

Define product differentiation. Describe an advertising strategy that you could use to differentiate your movie theatre. What is the benefit for firms with differentiated products?

C. Barriers to Entry:

What are some potential barriers to entry for another movie theater to entering this market? Do you think that they are sufficiently high to keep a third firm from entering this market?

Reference no: EM13802118

Questions Cloud

Draw a free body diagram for both block a and block b : How much would you weigh on these different planets and draw a free body diagram for both block A and block B.

Determine the skills strengths or qualities that you possess : Determine the skills, strengths, or qualities that you possess, relative to the seven dimensions of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Model.

Describe the osi reference model : Describe the OSI Reference Model. List the seven layers of the OSI model. Write the name of the layer next to the number to which it corresponds

Primary features of autism : 1. List the primary features of autism. 2. Which explanation for autism is no longer considered valid and lacks research support?

Define price discrimination-product differentiation : Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Define price discrimination. Describe a price di..

Evaluate the market for movies in micropolis : Suppose that you own a 25 year old movie theatre in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theatre with 4 IMAX screens and 20 more regular screens. For each of the characteristics listed below, ev..

What is the cournot nash equilibrium for this situation : Consider a market with two firms, each with constant marginal cost of $100 and facing a market demand curve of P=1000 - Q where W is total output of the two firms. Suppose they choose simultaneously, what is the Cournot Nash Equilibrium for this situ..

How many games did they win draw and lose : If Liverpool won twice as many games as they lost, how many games did they win, draw and lose - Can you prove that some value of the differences must occur at least 10 times?

Assignment pythagorean quadratic : Assignment Pythagorean Quadratic

User Account

All Pages