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What is the revenue maximizing pricing strategy

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Reference no: EM132288553

Consider a monopolist movie producer that produces two movies (A and B). The producer wants to sell these movies to two theaters (1 and 2). Theater 1's valuations for movie A is $4 and that of movie B is $1. Theater 2 serves a different demographic and its valuation for movie A is $3 and movie B is $2. Suppose price discrimination is not possible.

What is the revenue maximizing pricing strategy for the movie producer

Reference no: EM132288553

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