Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Question A.) In the short run, assume that all the costs [except film rental and concessions] at a theater are fixed, and that each theater can seat five hundred people per day, no more. The demand curve for tickets at this theater is P=8-.01q and the marginal revenue curve is MR=8-.02q where p is price in dollars per ticket and mr= marginal revenue from ticket sales and q= the number of people who buy per day. If each person who buys a ticket spends 50 cents at the concession stand for items that cost the theater 10 cents, if the theater must pay half of its ticket sales to rent the film, and if the theaters fixed costs are $1200 per day, what price should the theater charge for a ticket if it wants to maximize profit? how big will its profit be?
I think that profit is maximized when p= mc which = 8-.01q=.1 or .01q=8-.1= .01q/7.9=790 but this doesn't make sense.

Question B.) When some popular children's films were released, distributors insist on charging a minimum amount for admission. suppose that each child who comes to such a movie has $3, which is to cover admission and food. If the theater keeps 50 cents of every dollar spent on ticket sales( the rest goes to the distributor) and 77 cents of every dollar spent on food (the rest goes to the firms that supply them), derive an equation showing how the theater's profit per child varies with the price it charges. If you were the distributor, what price would you like to charge? (Suppose that each child spends the entire $3 in the theater)

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9309738

Have any Question?


Related Questions in Microeconomics

Question from 1982 through 2000 the sampp 500 stock price

Question: From 1982 through 2000, the S&P 500 stock price index rose an average of 14.7% per year (all figures in this problem are annual averages). Over the same period, the Aaa corporate bond rate fell from 13.8% to 7. ...

Question explain how a firm in a competitive market

Question: Explain how a firm in a competitive market identifies the profit-maximizing level of production. When should the firm raise production, and when should the firm lower production? The response must be typed, sin ...

Question you could write on any one of the following topics

Question: You could write on any one of the following topics or more than one topics. Please be reminded that while research could help for this essay, however, the most important thing is original idea. 1. Money is said ...

Question according to the bird and borio readings global

Question: According to the Bird and Borio readings, global economic imbalances arise over time and are often the usually the result of financial or structural economic imbalances that manifest in external imbalances. Wha ...

Question one of the most fact-filled publications you can

Question: One of the most fact-filled publications you can buy is the Daily Racing Form. 72 For every horse running that day it contains about 30 facts about each of its last ten races, including the name of the jockey, ...

Question a business that engages in substantial trading of

Question: A business that engages in substantial trading of commodities, currencies, and financial instruments must trust its traders to act with some prudence and with knowledge that the company's overall financial perf ...

Question becky and sarah are sisters who share a room their

Question: Becky and Sarah are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Becky and Sarah, of taking the ti ...

Question for this scholarly activity develop a supporting

Question: For this scholarly activity, develop a supporting human resource (HR) plan for an organizational strategy. Research a company that has undergone (or attempted to undergo) a shift in organization or culture with ...

Question let velocity be 3 and the money supply be 500a if

Question: Let velocity be 3 and the money supply be $500. a. If we assume that velocity is independent of the price level, what is the aggregate demand curve? b. Now let the long-run aggregate supply curve be Y=100. What ...

Question calculate the simple multiplier if the marginal

Question: Calculate the simple multiplier if the marginal propensity to consume is 0.4, investment rises $0.05 for every $1 billion increase in income, and net exports decline $0.08 for every $1 billion increase in incom ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As