Principles of Macroeconomics Plus MyLab Economics with Pearson eText (1-semester access) -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134424026
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 2, Problem 1.12P
To determine
Reason for popularity of the game.
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Consider the following scenario to answer the following questions: EJH Cinemas, a movie theater next to your university, attracts two types of customers—those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket. #12. What will be the amount of EJH Cinemas’ total revenue if the price is $7 per ticket? a. $250,000 b. $210,000 c. $180,000 d. $140,000 e. $105,000 #13. What is the amount of consumer surplus if the price is $7 per ticket? a. $120,000 b. $90,000 c. $80,000 d. $40,000 e. $0 #14. What will be the amount of EJH Cinemas’…
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Chapter 2 Solutions
Principles of Macroeconomics Plus MyLab Economics with Pearson eText (1-semester access) -- Access Card Package (12th Edition)
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