The only movie theatre from a small town shows a comedy and an action movie every week and has four consumers.

Consumers A and D are true devotees, willing to pay $$15$ for a comedy $($A$)$ or action movie $($D$)$ and nothing for the other option. action movie.

Consumer B is willing to pay $$11$ for a comedy and $$5$ for an

Consumer C is willing to pay $$5$ for a comedy and $$11$ for an action movie.

If the monopoly movie theatre charges the same price for any movie ticket, this price would be $$.$ Which bundling scheme would bring more revenues?

a. $$11$: $$15$ for a movie ticket sold separately, $$20$ if both a ticket for a comedy and one for an action movie are bought during the same week.

b. $$11$: $$15$ for a movie ticket sold separately, $$16$ if both a ticket for a comedy and one for an action movie are bought during the same week.

c. $$5$; $$15$ for a movie ticket sold separately, $$20$ if both a ticket for a comedy and one for an action movie are bought during the same week.

d. $$5$; $$15$ for a movie ticket sold separately, $$16$ if both a ticket for a comedy and one for an action movie are bought during the same week.

 

Answer rating: 100% (QA)

Explanation To determine the optimal bundling scheme that maximizes revenue for the monopoly movie t... View the full answer