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A multiplex movie theater estimates the week-end demand for afternoon shows to be D(p) = 1000-80p and the demand for evening shows to be D(p) = 1000-50p. The maximum seating capacity of the theater is 550 and the marginal cost is zero (e.g., variable costs are covered by pop-corn sales)
(i) Should the theater charge the same price of different prices for afternoon and evening shows?
(ii)What is the profit maximizing price (or prices) that the theater should charge?
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