You own a theater with 200 seats. The demand for seats is Q = 300 100P.
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You own a theater with 200 seats. The demand for seats is Q = 300 – 100P. You are charging $1.25 per ticket and selling tickets to 175 people. Your costs are fixed and do not depend on the number of people attending. Should you cut your price to fill the theater? Explain. What other pricing policies might you use to increase your profits?
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Revenue is maximized at the point where marginal re...View the full answer
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Related Book For 
Managerial Economics and Organizational Architecture
ISBN: 978-0073375823
5th edition
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
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