Read the article “popping mad? And watch the movie” by Richard B. Mckenzie, the Wall Street journal. 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?

Write 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?

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Monopoly power is the ability to control product or services prices by the suppliers This is because they are the sole producers of the product or the... View the full answer