As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that revealed two different demand curves at your movie theaters. On weekends the inverse demand function is PWeekend 15-0.001 QWeekend _ and on weekdays the inverse demand function is PWeekday 10 0.001 * QWeekday where Q is the number of movie goers and P is the price of a movie. You acquire legal rights from movie producers to show their films for $20,000 per movie, plus a $2 "royalty" for each movie-goer entering your theaters (the average moviegoer in your market watches a movie only once). MRWeekend 15 -0.002 QWeekend MRWeekday 10-0.002"QWeekday 1. What are the profit maximizing prices and quantities for Weekend and Weekday markets? 2. Draw the graphs of both the Weekend and Weekday markets and determine the optimum prices and quantities 3. What are the elasticities of demand for the Weekend and Weekday markets? 4. For third degree price discrimination, what is the relationship between pricing and elasticity of demand in the two markets? 5. Under what conditions can a firm do third degree price discrimination?

The demand function for specialty steel products is given, where p is in dollars and q is the number of units. please answer parts b and c

In her spare time, your colleague is selling hand-carved wooden boxes on Etsy. The boxes are currently priced at $30/box. Your colleague is not happy with their current revenue stream and asks for your advice. You estimate that demand for your colleague's hand-carved wooden boxes is: Q = 800-20P. If your colleague is looking to maximize revenue, how should they price their wooden boxes? Keep prices at $30/box Lower prices to $20/box Raise price to $40/box Lower price to $25/box Raise prices to $35/box

The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfighter, reduced the price of its electric toothbrush from $35 to $25. As a result, Stopdecay's sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecay's toothbrush and Decayfighter's toothbrush? -1.61 O 1.61 0.62 O -0.62 The value of the arc cross elasticity between these products suggests that they are If Stopdecay knows that the arc price elasticity of demand for its toothbrush is -1.6, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. O $30.75 $28.46 $21.96 O $25.00 It Stopdecay does not change its price, the average monthly total revenue would be the same number of units as it did before, the average monthly total revenue would be…