Roxie's Movie Theatre Has a Monopoly and Discovers That at $12

question 136

Multiple Choice

Roxie's Movie Theatre has a monopoly and discovers that at $12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table above reveals the results of the survey. Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of showing a movie is $6. Roxie's charges _______ on weekdays and _______ on weekends.

• A) $3; $12
• B) $6; $15
• C) $9; $12
• D) $6; $18

Recognize how specialization and coordination problems affect a firm's costs.

Interpret graphs and tables to determine a firm's cost behavior over different output levels.

Explain how varying output levels influence long-run marginal and average total costs.

Distinguish between the cost characteristics of different firms based on their size and output levels.

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Definitions:

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