monopoly power

Project Description:

please read the article “popping mad? sit down and watch the movie” by richard b. mckenzie, the wall street journal, may 28, 2010, which is attached.

discussion: theatre popcorn may not be cheap, but it's actually a good deal for everyone. in this article, the market for movie theatre popcorn is analyzed from three points of view. first, compared to the price of either microwave or stove-top grocery store popcorn, the price of movie theatre popcorn is expensive. second, by calculating the cost of a theatre preparing popcorn, the price is reasonable. third, movies and movie theatre popcorn are economic complements. as one theatre chain founder comments, "i show movies to sell popcorn." hence, theatres price the bundle of movie and popcorn. these points of view help in answering the question: if theatres set such high prices for popcorn, then why are popcorn lines so long?

post your comments, with the following questions in mind:

· why is movie theatre popcorn more expensive than microwave popcorn? discuss the comparison of the prices of restaurant meals to grocery store ingredients and the comparison of movie theatre popcorn prices to microwave popcorn.

· do movie theatres set popcorn prices that are too high? if so, do moviegoers consider popcorn prices when choosing which theatres to patronize?

· should a government set a price ceiling on movie theatre popcorn?


i want two answers for the same question with different views in each of it
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