Calculate the price that the plaza movie house will charge, Ask an Expert

Economics

In Akron, Ohio, the movie market is monopolistically competitive. The demand function for daily attendance and the long-run average cost function at the Plaza Movie House are, respectively,

P = 9 - 0.4Q

and

AC = 10 - 0.06Q + 0.0001Q²

(a) Calculate the price that the Plaza Movie House will charge for admission to movies in the long run.

(b) What will be the number of patrons per day at that price?

(d) How much profit will the firm earn?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9366922

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