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

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Definitions:

Flooding

A psychological treatment method where a person is exposed to their fear at full intensity in order to help them overcome it.

Fear-Provoking Situation

A circumstance or setting that induces a response of fear or anxiety, often leading to avoidance or defensive behaviors.

Escape Response

A behavioral reaction to avoid or get away from a threatening or uncomfortable situation.

Flooding

A behavioral therapy technique used for treating phobias and anxiety disorders by exposing the patient to their anxiety source without any danger, in order to overcome their anxiety.