Tuesday

July 22, 2014

July 22, 2014

Posted by **Brad** on Saturday, November 14, 2009 at 4:49pm.

4a. What price will the theater owner charge if she must pay a fee of $12,000 per week to rent the movie?

4b. What price will she charge if she must pay $4 per ticket to the film distributor?

4c. What price will she charge if she must pay 80% of her revenues to the distributor?

4d. How much revenue will she get ($12,000 per week rental) if she can perfectly price discriminate?

Can you please tell me how to break each problem down.

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