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Q. You run a chain of movie theaters; consequently you commission a marketing study about categorizes your potential consumers into 10 equal-sized groups according to what they are willing to pay for a movie ($10, $9, $8, $7, $6, $5, $4, $3, $2, $1). It turns out that low the value of customer groups, those with values ($5, $4, $3, $2, $1), are all over 65 years old. All costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for the movie tickets? Should you offer senior citizen discount? If so, how much?
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