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

Suppose that a movie theater owner faces the demand curve given by P=10-.001Q where P is the price of a ticket in dollars and Q is the number of tickets sold per week. Suppose that all the cost associated with the theater other than film costs do not vary with the number of tickets sold.

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.

## Answer this Question

## Related Questions

- algebra - A movie theater has 400 seats. Tickets at the theater cost $8 for ...
- math - Suppose a movie theater sold 200 adult and student tickets for a showing ...
- Economics - got this from my teacher, A monopolist faces a demand curve given by...
- Discrete Mathematics - When a theater charges $50 per ticket, a sold-out crowd ...
- Algebra - A movie theater manager wants to know how many adults and how many ...
- Math - A theater seats 200 people and charges $10 for a ticket. At this price, ...
- ratio - 30% of the tickets sold by a movie theater for the Friday night show ...
- math - 30% of the tickets sold by a movie theater for the Friday night show were...
- algebra - Q 2: If the ticket agency charges ‘p’ dollars per ticket for a concert...
- calc - A new software company wants to start selling DVDs with their product. ...

More Related Questions