Suppose You Are the Manager of a Theatre

question 108

Essay

Suppose you are the manager of a theatre.You currently charge the same admission price to all customers, regardless of age.You hire an economist to determine the price elasticity of demand for admissions by age and he tells you that at the current price, demand by adults is inelastic and demand by children is elastic.If you want to increase your total revenue by adjusting admission prices, how should they be adjusted?

Distinguish between exploration and exploitation in the context of organizational strategy and structure.

Acknowledge the role of autonomy and flexibility in fostering innovation within organizations.

Identify key industries where modular organization structures are prevalent.

Understand the principles of Holacracy and its distinguishing features.

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Definitions:

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life to account for the decline in its value over time.

Fixed Assets

Durable physical assets owned and utilized by a company in its operations for the purpose of producing revenue.

Erosion

The gradual reduction or depletion of an asset's value, often due to competitive market forces or the introduction of new products.

Product Line

A product line is a group of related products under a single brand offered by a company to fulfill different consumer needs.