Will the movie theatre owner prefer this arrangement

Assignment Help Business Economics

Reference no: EM131387654

The movie distributor charges a movie theatre $ 8 per ticket to watch a movie. Suppose the theatre can seat a maximum of 1,900 people. The demand for the movie is different for the afternoon showing and for the evening showing. Based on the demand function :

P = 80 – Q/40 for the evening showing,

P = 40 – Q/40 for the afternoon showing and

The marginal-revenue function for the

evening is MR = 80 – Q/20

afternoon is MR = 40 – Q/20

Calculate the profit-maximizing price in the evening ____________ and the afternoon; ____________ also calculate how many tickets will be sold for each show.

evening ____________

afternoon;____________

Suppose that the movie distributor now charges a flat fee of 2,600 to show the movie regardless of the number of tickets sold. Will the movie theatre owner prefer this arrangement? _________

Reference no: EM131387654

Questions Cloud

How are the transfers into the idle states affected : Describe how the partitioning rules should be modified to handle Mealy outputs. How are the transfers into the idle states affected?

Develop a dose-response assessment curve for adults : Identify and define all exposure and health risks from PCBs and lead. Develop a dose-response assessment curve for adults and children for PCBs and lead

What is the benefit-cost ratio of the shelving system : A library shelving system has a first cost of $23,500 and a useful life of 10 years. The annual maintenance is expected to be $2,700. The annual benefits to the library staff are expected to be $8,600. If the effective annual interest rate is 9.5%, w..

Explain whether jones and walker would be successful : Walker made offers to complete the job, but Jacobs declined to permit Walker to fulfill his contract. Explain whether Jones and Walker would be successful in an action against Jacobs for breach of contract.

Will the movie theatre owner prefer this arrangement : The movie distributor charges a movie theatre $ 8 per ticket to watch a movie. Suppose the theatre can seat a maximum of 1,900 people. The demand for the movie is different for the afternoon showing and for the evening showing. Suppose that the movie..

Provide a brief description of organisation which it belongs : Provide a brief description of this organisation and the industry to which it belongs. You may also want to include in this description any mission statements, value statements or ‘slogans' that this organisation utilizes to communicate its purpos..

Explain who will prevail : Barta, therefore, could not obtain a leasing agreement meeting his approval. Barta refused to close the sale. In a suit by K&K Pharmacy against Barta for breach of contract, who will prevail? Explain.

Analysis of the new mine and present : Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine.

Draw the fully reduced state diagram : (State Reduction) Given the state diagram in Figure Ex. 8.5, draw the fully reduced state diagram. State succinctly what strings cause the recognizer to output a 1.

User Account

All Pages