Which would pay the lower price

Reference no: EM131481142

Question: Seven potential customers are interested in seeing a movie. Since the marginal cost of admitting additional customers is zero, the movie theater maximizes its profits by maximizing its revenue

a. What price would the theater charge if it could only charge one price?

b. If the theater could charge two prices, what prices would it choose? Which customers would pay the higher price, and which would pay the lower price?

Reference no: EM131481142

Questions Cloud

Find preventing resale key successful price discrimination : If perfect price discrimination reduces consumer surplus to zero, how can this lead to the most socially desirable level of output?

Developments in sub-saharan africa economies : China's economic relations with SSA (or some regions of Africa) and the consequences of these relations for the SSA economies.

Identify and discuss five major issues with galaxy : Identify and discuss five major issues with Galaxy, Inc. that Itza Yu must address in organizing the production floor for both existing production and the new project.

An integral part of six sigma : An integral part of Six Sigma is:

Which would pay the lower price : Seven potential customers are interested in seeing a movie. Since the marginal cost of admitting additional customers is zero, the movie theater maximizes.

Prior to the development of the internet : A clear message should have a purpose and a thesis that are apparent to the listeners. Prior to the development of the internet, there was no real public forum.

Discuss the example of price discrimination : Identify whether each of the following is an example of price discrimination. Explain your answers.

How to get the risk analysis accepted in an organization : How to get the risk analysis accepted in an organization? Explain critically.

What role does communication play in conception of democracy : What role does communication play in conception of democracy? What obstacles to democracy as presented in this text? What did you take away from reading book?

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages