Devise a pricing strategy to maximize the firms profits

Assignment Help Macroeconomics

Reference no: EM13223135

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 has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P = 15 - 0.001Q; on weekdays, it is P = 10 - 0.001Q. You acquire legal rights from movie producers to show their films at a cost of $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). Devise a pricing strategy to maximize your firm's profits.

Reference no: EM13223135

Questions Cloud

What is utilization of pharma devs development facilities : What is the utilization of Pharma Dev's development facilities and how long does it take for the average technology from filing a patent to the start of the development process?

Individuals infected with hiv aids have physical : Topic is Individuals infected with HIV/AIDS have Physical needs

Based on statistical information calculate the profits : To simplify the computations, suppose the cost of production is zero for both products. You have estimated that there are three types of customers, I, II, and III, who buy the products of the firm. There are 2,000 customers of each type, and they ..

Defien the equilibrium constant kc : The equilibrium constant Kc equals 1.6 10-2 at 200°C. What are the moles of substances in the equilibrium mixture at 200°C if we start with 0.021 mol HBr in a 1.3-L vessel?

Devise a pricing strategy to maximize the firms profits : 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 has revealed two different demand curves

Discuss the statement that to manage effectively : Discuss the statement that to manage effectively, a person must have the authority to hire subordinates, assign them to specific jobs, and reward them on the basis of performance. Interview the chairperson of an academic department and determine w..

Explain derives much of it''s acidity from citric acid : Orange juice is an aqueous solution that derives much of it's acidity from citric acid. There are variations in the acidity of each brand depending on many factors

How to develope a statistical software package : You are a pricing analyst for QC Corporation, a company that recently spent $10,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client's demand for your software is Q^d =..

What has been the impact of horizontal integration : What has been the impact of horizontal, vertical, and virtual integration on health care organizations?

User Account

All Pages