Cinemax is the only movie theater in dannyburg as such it


Cinemax is the only movie theater in Dannyburg. As such, it operates as a price-discriminating monopolist. Two types of customers view movies there: adults (A) and high school students (S) . Their respective demand functions are: Qa = 6400 Pa-2 Qs = 30,000 Ps-4 a. (1) Without knowing marginal cost, what percent discount should the firm offer to students? b. (2) If the firm’s marginal cost per person is $4, what price should each type of ticket carry? How many of each type of ticket are sold (round to nearest ticket if necessary)?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Cinemax is the only movie theater in dannyburg as such it
Reference No:- TGS01179804

Expected delivery within 24 Hours