A movie production company is determining prices for three types of movies to three movie theaters. These theaters have the following reservation prices: theater drama action romcom A 100 70 20 B 50 110 90 C 60 40 120 Assume costs for the production company are zero, thus the firm wishes to maximize revenue. a. Determine the optimal individual movie prices, and also determine the optimal bundle price. b. Compare profits and comment on which is the better strategy. c. Describe two-part pricing, and explain the similarities to bundling in improving the profits of the firm.

Q: a.Evaluate the reasons we see the prevalence of intra-industry trade between similar economies.

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Aggregate consumption varies less than aggregate investment. Briefly explain why this is true…

A: Due to the marginal propensity to consume is smaller than one, aggregate consumption grows slower…

Q: How did small businesses helped in employment?

A: In economic terms, employment refers to the state of having or being employed. If someone must be…

Q: # Lumberjacks 1 2 3 4 # Trees (TP) 4 10 12 13 13 MP 4 1

A: Diminishing marginal product is the change in additional output due to change in additional input.…

Q: P= 80-Q MC= 20 t 3Q 9=80 be 2/3 c=20 d=/½ MARKET is pere&tly Compehtwe. Find: eaulib. quannny, prce,…

A: Given information P=80-2/3*Q MC=20+1/3*Q a=80 b=2/3 c=20 d=1/3

Q: Continuing to refer to Table 7.9 and Figure 7.7, compute the average total cost, average variable…

A: * SOLUTION :-    Given that ,

Q: As new firms enter a monopolistically competitive industry, the demand and marginal revenue curves…

A: Monopolistic competition is a type of market structure. It has features of both i.e. perfect…

Q: Use the figure below to answer the following question.   If the output level is Q1, then deadweight…

A: Deadweight loss is the decrease in total surplus when socially efficient quantity is not produced.

Q: How would you classify the market structure for Food Network’sofferings (both content and tangible…

A: Market structure describes how various industries are classified and differentiated based on the…

Q: 7) Candice wants to sell two types of chocolate bars, Dark (D) and White (W) to three consumers: A,…

A: A B C Dark 0 3 2 White 3 0 2 Bundle 3 3 4

Q: Thirteen students decide to vote on whether to play basketball B, soccer S, or volleyball V after…

A: Voting refers to the process of choosing leaders or for taking decisions over a set of preferences.…

Q: What is the maximum wage at which Allison would be willing to hire Jim?

A: Solution 1)Consider the above given that a) Since Jim's choice counts extra revenue of $500 to the…

Q: Suppose that the depreciation rate increases. In the Solow growth model, determine the effects of…

A: Under the solow growth model, using the variables such as the capital accumulation, rise in…

Q: Y S G X-IM 935 -250 320 40 70 2,100 320 140 40 3,220 250 320 200 -150 4,800 375 320 240 -185 5,320…

A: Aggregate expenditure is the sum of consumption ,investment, government spending and net exports in…

Q: 3. What is development? Sustainable development? We often use real per capita GDP as a proxy for the…

A: Advancement characterize as the improvement in nation's financial and social condition. Advancement…

Q: What is the simplified procedures used to prepare and evaluate the pro forma income statement and…

A: One method for calculating financial results is pro forma, Latin meaning "for form" or "as a matter…

Q: Which rules are followed to be a successful entrepreneur?

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: Demand: QD = 24P-1 Total cost: C = 4Q %3D a. Find the TR, MR, MC, and profit (1) equations. GRAPH…

A: In monopoly, the eqm quantity is found by the intersection of MC(marginal cost) and MR(marginal…

Q: A monopolist faces the demand function P= 10- Q and the total cost function TC% = 2Q. Showing all…

A: A monopolist is a market situation in which there exists competition among few. since the…

Q: (i) Explain the relationship between the current account balance given by exports (X) minus imports…

A: Since you have posted multiple questions, we will answer the first question for you. If you want any…

Q: the decision rule for rejecting the null hypothesis H0H0.

A: Solution 1)Consider the above given that Null Hypothesis H0: P1=P2 Alternate Hypothesis Ha :…

Q: 1. A company intends to replace equipment that is no longer able to meet its needs. The two best…

A:

Q: During a year of operation, a firm collects $50,000 in sales revenue and spends $10,000 on salaries…

A: In a year a firm collects $50,000 in sales revenue and spends $10,000 on salaries of workers, $1,520…

Q: Consider the Ramsey Model of the macroeconomy. Explain using a phase diagram how an economy starting…

A: The Ramsey-Cass-Koopmans model, sometimes known as the Ramsey growth model, is a neoclassical growth…

Q: In Wonderland production per worker (y) depends on capital per worker (3) such the y=10√k. Every…

A: Output per worker : y = 10(k)0.5 Depreciation (d)= 15% Saving rate(s) = 10% Population growth rate…

Q: 1. Suppose the following game is repeated infinitely. The players have a common discount factor dE…

A:

Q: If the price of a good or service is lowered and people buy more of this good or service, this…

A: Demand - it refers to the quantity of a good that a consumer is able and willing to purchase during…

Q: Refer to Figure 20.1 to answer the following question. Figure 20.1: Exchange Rates EXCHANGE RATE…

A: Exchange Rate refers to the exchange value of a country’s currency in terms of another country’s…

Q: Macroeconomics is primarily concerned with business cycles and economic growth. Which of these two…

A: When talking about macroeconomics z it can be said that it is the broader economic concept that has…

Q: Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The…

A: In a perfectly competitive market, firms do not have any market power so price is constant. Price is…

Q: Consider the following demand information: Quantity Price 40 34 10 What is the price given the…

A: Total revenue is price multiplied by quantity. Total revenue is maximum when marginal revenue is…

Q: Question 34 If the demand for money exceeds the available supply, it can be expected that: O the…

A: Answer is given below

Q: Which of the following statements explains why the exchange rate of the dollar will rise if the U.S.…

A: The policy that uses the collection of revenue by the government and expenditure for influencing the…

Q: 3) Please use the given normal form matrix below to answer the following questions. Player 2…

A: Dominant strategy is the strategy that gives maximum payoff to a player irrespective of what other…

Q: ssume a set of well-behaved (i.e. strictly monotone and strictly convex) intertemporal indifference…

A: To understand the above stated problem firstly we state the intertemporal budget constraint faced by…

Q: MadibaVille began the year in long-run equilibrium. After extensive consultations with the country's…

A: When marginal revenue(MV) is equal to marginal costs(MC), which is also equal to average total…

Q: One of the main objectives for firms is profit maximization. (a) Explain, using diagrams, how…

A: Price setting firms are generally in a monopoly market structure with single producer whereas price…

Q: Support your answer with calculations please. Suppose an economy in which the public holds 10% of…

A: We know that the monetary base is the sum of currency C and reserve R MB=C+R             .... (1)…

Q: drawing on Portes (2022) and Sumption ,Discuss the available tools to address labour shortage…

A: A labor shortage occurs when a sufficient number of adequately competent, qualified, trained, and…

Q: In a two-period model, an individual earns and consumes C1 in period 1 and only consumes C2 in…

A: Income in period 1 = $4500 Saving interest rate = 3.3% or 0.033 Consumes C1 in period 1 and only…

Q: TABLE 2 First Period First Second Second Total Profit Price Choice Period Period Price Period for…

A: After collaborating in the first round, Andrew and Jasmine imitates the action of their opponent in…

Q: The declining labour share, which is expected to continue in the future, implies that Australia will…

A:

Q: Find the quantities which maximize utility, if you have the utilit functions is (n=Q1Q2+Q1+2Q2)…

A: Utility is maximised at a point where slope of an indifference curve is equal to the slope of a…

Q: While all economic theories say the government can positively affect the economy, some theories say…

A: The term "government intervention" refers to the situation in which a government acting as a rule…

Q: A firm that is perfectly competitive in the output market faces a demand curve for its output: P =…

A: A firm that is perfectly competitive in the output market faces a demand curve for it's output P= MR…

Q: The following is a total-product schedule for a resource. Assume that the quantities of other…

A: Total product is the total output produced using factots of production or resources. Labor, capital…

Q: A price taking firm has zero fixed cost and increasing marginal cost. What quantity does it produce?…

A: Here ATC=AVC  In this question, the firm will keep gaining profit after the point X until MC=MR at…

Q: If a French citizen buys a bottle of wine from California, then U.S. consumption increases, U.S. net…

A: GDP is the value of final goods and services in the economy within a given period of time.

Q: Question 16 Marginal social cost equals marginal cost plus marginal cost. consumer; production O…

A: Marginal cost refers to the total cost that the society pays for the production of one more unit of…

Q: b) "International trade is beneficial to developing countries." Do you agree? Discuss your arguments…

A: Due to the  need or want of goods or services, the exchange of capital, goods, and services across…