The Cinematheque Ontario has to pay a fixed nightly amount of $500 for films regardless of...

 

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The Cinematheque Ontario has to pay a fixed nightly amount of $500 for films regardless of how many people come to the movie. Assume that if the Cinematheque is closed, costs are zero. The nightly demand for Cinematheque movies by students is Qs 220- 40PS, while the nightly demand by nonstudents is QN = 140 – 20PN. (a) If the Cinematheque charges a single price to everybody, what price will it set? How many tickets will it sell? (b) How many of the tickets would be sold to students, and how many to nonstudents? (c) How much profits would the Cinematheque make? (d) Suppose that the cashier can accurately separate the students from the nonstudents at the door by making students show their student ID cards. Students cannot resell their tickets and nonstudents do not have access to studet ID cards. What price would then be charged to students? How many student tickets will be sold? What price will be charged to nonstudents? How many nonstudent tickets will be sold? (e) How much profit will the Cinematheque make in this case? The Cinematheque Ontario has to pay a fixed nightly amount of $500 for films regardless of how many people come to the movie. Assume that if the Cinematheque is closed, costs are zero. The nightly demand for Cinematheque movies by students is Qs 220- 40PS, while the nightly demand by nonstudents is QN = 140 – 20PN. (a) If the Cinematheque charges a single price to everybody, what price will it set? How many tickets will it sell? (b) How many of the tickets would be sold to students, and how many to nonstudents? (c) How much profits would the Cinematheque make? (d) Suppose that the cashier can accurately separate the students from the nonstudents at the door by making students show their student ID cards. Students cannot resell their tickets and nonstudents do not have access to studet ID cards. What price would then be charged to students? How many student tickets will be sold? What price will be charged to nonstudents? How many nonstudent tickets will be sold? (e) How much profit will the Cinematheque make in this case?

Answer rating: 100% (QA)

Answer of all parts are given below Ans A we need to make a common demand function that shows the to... View the full answer