A Movie Theater Faces the Following Hourly Inverse Demand Curves

question 38

Multiple Choice

A movie theater faces the following hourly inverse demand curves:
Seniors: P_s = 12 - 0.5Q
Adults: P_a = 19 - Q
The marginal cost is constant at $1. If the movie theater must charge everyone the same price, the profit maximizing ticket price is $____.

• A) 10
• B) 8.50
• C) 7.67
• D) 6.50

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Definitions:

Prostitution

The practice or occupation of engaging in sexual activity with someone for payment.

Human Behavior

The range of actions and mannerisms exhibited by humans, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.

White Slave Traffic Act

Also known as the Mann Act, a United States federal law passed in 1910 aimed at preventing the transport of women across state lines for "immoral" purposes.

Immoral Purposes

Describes actions or intentions that are considered to be contrary to the moral or ethical standards of society.