The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 4.0 for tickets at Movies Plus and adults have an own price elasticity of 2.0. If the managers have correctly determined the third-degree profit-maximizing price for adults is $10, what is the third-degree
profit-maximizing price to charge students?
A) $5.50 B) $15.00 C) $6.67 D) $12.00
C) $6.67
You might also like to view...
U.S. imports are:
A. U.S. goods sold to Americans. B. U.S. goods sold to foreigners. C. Foreign and U.S. goods sold to foreigners, but consumed in the U.S. D. Foreign goods bought by Americans.
Which of the following would cause an increase in the market supply of drones?
A) a decrease in the demand for drones B) an increase in taxes levied on drones C) an increase in the cost of components used to make drones D) an increase in the number of firms making drones
If one U.S. dollar can be exchanged for 5 Swiss francs, then 1 franc can be exchanged for:
a. 5 cents. b. 20 cents. c. 50 cents. d. 2 dollars.
What is a situation in which two or more actors have a common interest but cannot automatically collaborate to achieve it?
a. a collective action problem b. a relative gains problem c. a transnational problem d. a sustainability problem