The demand curve, Microeconomics

The owner of the sole stage-theatre in the city of Vordervilla has found through   experience that the cost of running his 600-seat theatre remains virtually the same irrespective of whether there is a 'full house' or not. 

The owner wishes to maximise his profits and has estimated that the demand curve of adults for the theatre can be represented by the function QA = 1000 - 50P, whereas the demand curve of children is given by QC = 600 - 50P.

Assume that the owner chooses not to price discrimination and must therefore sell all tickets at the same single price.  What will that price be per ticket?  What will be the ratio of adults to children attending the theatre?  

 

 

Posted Date: 2/27/2013 12:18:33 AM | Location : United States







Related Discussions:- The demand curve, Assignment Help, Ask Question on The demand curve, Get Answer, Expert's Help, The demand curve Discussions

Write discussion on The demand curve
Your posts are moderated
Related Questions
A MANUFACTURING UNIT IS INTERESTED IN DEVELOPING A BENEFIT SEGMENTATION OF THE CAMERA MARKET. SUGGEST SOME MAJOR BENEFIT SEGMENT WITH MARKET TARGETING STRATEGIES?

Is Indian companies running a risk by not giving attention to cost cutting?

a monopolist faces a demand curve Qd- 120-2p and has costs given by C(Q)=20Q+100 (marginal cost is constant at $20) a. What is the optimal Price and Quantity for this monopolist?

What is Demand Forecasting? Explain in brief various methods of forecasting Demand.

Divisional Str ucture Some organizations run as a number of divide, autonomous business units, synchronized by a central headquarters. This is a divisional structure.

Economies of Scope The ability of a organization to decrease its unit costs by producing two or more products or services that involve complementary skills, experience and

What is the difference between houehold and consumers?

What is demographic transition In the world today not all nations have gone through their demographic transitions. Many countries today aren't rich enough to have begun populat

Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply is upward sloping. If sellers of purple magic markers are taxe

Program Spending: Government spending that is undertaken to provide useful public programs. Program spending includes both transfer payments which are intended to supplement the in