When a New Movie Is Released,typically Every Theater Offers the Movie

question 11

Multiple Choice

When a new movie is released,typically every theater offers the movie on the same day.What would someone expect the difference in movie ticket prices to be across theaters?

• A) The difference in prices across theaters will be small because no single theater has market power.
• B) The difference in prices across theaters will be large because no single theater has market power.
• C) The difference in prices across theaters will be small because the movie is new and can only be seen at a movie theater.
• D) The difference in prices across theaters will be large when a movie becomes more popular.
• E) The difference in prices across theaters will be small when a movie becomes less popular.