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Price-quantity combination for the first group

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Reference no: EM131348727

This is the market for movie tickets at a theater. You can see the market demand for ticketsand the marginal and average cost for showing movies. The theater owners have determinethat they serve three segmented groups of consumers in this market and that arbitrage is notpossible. One group of consumers is willing to pay up to $6.50 per movie for 25 movies peryear. The next group is willing to pay $4 per movie for 50 movies per year. The final groupis willing to pay $1.50 per movie for 75 movies per year

Part 1: Draw the price-quantity combination for the first group of movie-goers and label it Market Price 1.

Part 2: Draw the price-quantity combination for the second group of movie-goers and label it Market Price 2.

Part 3: Draw the price-quantity combination for the third group of movie-goers and label itMarket Price 3.

Reference no: EM131348727

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