As Manager of the Only Video Store in Town,you Have

question 115

Essay

As manager of the only video store in town,you have noticed that on Thursday through Sunday the demand for renting your movies is much higher than it is on Monday through Wednesday.You therefore conducted a study that revealed two different market demand curves.On weekends,your inverse demand curve is P = 10 - 0.001Q; on weekdays,it is P = 5 - 0.01Q.The marginal cost of renting a movie is $.50 (50 cents).Your average customer never rents more than one movie at a time.What pricing strategy will maximize your profits?

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Definitions:

Smaller Nations

Countries with relatively low population density, area, or economic influence compared to larger, more powerful states.

William H. Seward

An American politician who served as the United States Secretary of State under Presidents Abraham Lincoln and Andrew Johnson, remembered for his purchase of Alaska.

American Empire

Refers to the United States' expansion and exertion of economic, military, and cultural influence around the world.

Natural Process

A sequence of events or phenomena occurring in the natural world, governed by the laws of nature without human intervention.