Question: the edmond theatre is contemplating charging a different price for...
the Edmond Theatre is contemplating charging a different price for a ticket to an afternoon show than for the same film that evening. In adopting a price strategy, the Edmond must consider that fixed costs are 20$ per week and variable costs are .50$ per customer.
Pa = 8.5 - 0.4 Qa
Pb = 4.5 - 0.2 Qb
Calculate the Edmond's prices, output and profit, with and without price discrimination.