Posted by mimi on Sunday, August 15, 2010 at 1:12pm.
Suppose that in 2008, you became president of a small nonprofit theater company. Your playhouse has 120 seats and a small stage. The actors have national reputations, and demand for tickets is enormous relative to the number of seats available; every performance is sold out months in advance. You are elected because you have demonstrated an ability to raise funds successfully. Describe some of the decisions that you must make in the short run. What might you consider to be your “fixed factor”? What alternative decisions might you be able to make in the long run? Explain.

microeconomics  Anonymous, Friday, April 1, 2011 at 11:48am
You'd want to raise ticket prices  at least to the point where all performances aren't sold out, and likely higher  in order to maximize revenue. Virtually, all of your costs are fixed unless you have a rev share contract with the talent.

microeconomics  hrt, Wednesday, October 19, 2016 at 11:39pm
4geeg4
Answer This Question
Related Questions
 Math  There are 4 sections of seat in the playhouse theatre. Each section has7 ...
 math (plz help)  In a movie theater, theater A has 30 seats in the first row. ...
 Discrete Mathematics  Mathematical sequences can be used to model real life ...
 algebra  A movie theater has 400 seats. Tickets at the theater cost $8 for ...
 math  In a movie theater, Theater A has 30 seats in the first row. Each next ...
 work problem math  The theater seats 300 people . How many seats were not sold ...
 math  The Downtown Theater group sold 650 tickets to its latest production. ...
 math arithmetic sequence and series  A theater has 30 seats in the first row, ...
 algebra  One evening 1500 concert tickets were sold for the Fairmont Summer ...
 math  In a movie theater, theater A has 30 seats in the first row. Each next ...
More Related Questions