you own a small cineplex theater with 200 seats. the demand for seats is Q=3000-20P. you are charging rm6.50 per ticket and selling tickets to 160 people. your costs are fixed at rm125 and do not depend on the number of people attending. should you cut your price to fill the theatee? explain. what other pricing policies might you use to increase your profits?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 15P
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you own a small cineplex theater with 200 seats. the
demand for seats is Q=3000-20P. you are charging
rm6.50 per ticket and selling tickets to 160 people.
your costs are fixed at rm125 and do not depend on
the number of people attending. should you cut your
price to fill the theatee? explain. what other pricing
policies might you use to increase your profits?
Transcribed Image Text:you own a small cineplex theater with 200 seats. the demand for seats is Q=3000-20P. you are charging rm6.50 per ticket and selling tickets to 160 people. your costs are fixed at rm125 and do not depend on the number of people attending. should you cut your price to fill the theatee? explain. what other pricing policies might you use to increase your profits?
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