Roxie's Movie Theatre has a monopoly and discovers that at $12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table above reveals the results of the survey
Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of a showing a movie is $6. Roxie's charges ________ on weekdays and ________ on weekends. A) $9; $12
B) $6; $15
C) $6; $18
D) $3; $12
A
You might also like to view...
A recent study on enrollment at a liberal arts college concluded that demand elasticity is 0.91 . The administration is considering a tuition increase to help balance the budget. The revenue-maximizing decision is to
a. decrease tuition, which should boost enrollment enough to balance the budget. b. decrease tuition, which would bring in more revenue. c. leave tuition as is-an increase would not help balance the budget. d. increase tuition, which would bring in more revenue.
A perfectly competitive firm discovers that its MRPL divided by the wage equals 1.5. The firm should
A) check the MRP of the other inputs and divide them by their prices. If they are all equal to 1.5 it is maximizing profits. B) hire more labor. C) purchase more capital. D) try to pay a lower wage rate.