Suppose that a small-town theater has six potential customers and islooking to implement price discrimination depending on whencustomers want to atlend. Suppose the marginal cost of serving anadditional customer is $1.50. The data provide information about theLime of attendance and willingness to pay for a ticket.Maximum willingnessTime ofCustomerto payattendanceBrandon$4matineeTyler$35eveningAustinS10eveningAlexis$7matineeAshley$12eveningEmily$12matineeWhat should the theater charge for evening lickets?20IncorrectWhat should the theater charge for matinee tickets?24

A potential customer is an individual who has requirements and desires which can be fulfilled by…

Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the Maximum willingness Time of Customer to pay attendance Brandon $4 matinee Tyler $35 evening time of attendance and willingness to pay for a ticket. Austin $10 evening Alexis $7 matinee Ashley $12 evening Emily $12 matinee What should the theater charge for evening tickets? 20 Incorrect What should the theater charge for matinee tickets? 24 7

Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the Maximum willingness Time of Customer to pay attendance Brandon $4 matinee Tyler $35 evening time of attendance and willingness to pay for a ticket. Austin $10 evening Alexis $7 matinee Ashley $12 evening Emily $12 matinee What should the theater charge for evening tickets? 20 Incorrect What should the theater charge for matinee tickets? 24 7

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.3P

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