Question

Assume the following willingness to pay for three customer segments for their first five visits to a movie theater:

Visits	Segment A	Segment B	Segment C
First	9.00	10.00	12.00
Second	6.00	7.50	10.00
Third	3.50	5.50	8.00
Fourth	2.00	4.00	6.00
Fifth	1.10	1.50	3.50

Which would be the revenue if we could optimize the price for each visit?

$40.00

$67.50

$64.50

$49.00

Answer 1

Answer : $ 67.50
Explanation -
Following are the optimal prices for which the revenue would be maximum
1st visit -- Price = $9 , total revenue = 3*9 = $27
2nd visit -- Price = $6, total revenue = 3*6 = $18
3rd visit -- Price = $5.50 , total revenue = 5.50*2 = $11 [ This is greater than 3 people paying $3.5 each or one paying $8]
4th visit -- Price = $4, total revenue = 2*4 = $8 [This is greater than 3 people paying $2 each or one paying $6]
5th visit -- Price = $3.5 , total revenue = 1*3.5 = $3.5 [This is greater than 3 people paying $1.10 each or 2 people paying $1.50 each]
​​​​​​​​​​​​​​​​​​​​​ Thus maximum revenue = $(27+18+11+8+3.5) = $ 67.50