Question

You are a consultant working with a movie theatre. You have drawn cost curves for the...

You are a consultant working with a movie theatre. You have drawn cost curves for the theatre showing movies in a competitive market. Show in a diagram the theatre maximizing its profits at a point z. when the ticket price of movies is $10. If the firm sells 100 tickets at this price and makes a profit of $500, what is the average cost per movie ticket and what is the marginal cost per movie ticket? Show and explain

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You own a small town movie theatre. You currently charge $5 per ticket for everyone who...
You own a small town movie theatre. You currently charge $5 per ticket for everyone who comes to your movies. Your friend who took an economics course in college tells you that there may be a way to increase your total revenue by increasing the price. Is this necessarily a good idea? What is/explain/describe the relationship between revenue and elasticity?
Please only answer a.b.c.d. thanks! Other questions are just to keep this question complete. State the...
Please only answer a.b.c.d. thanks! Other questions are just to keep this question complete. State the profit maximizing condition of a firm in a perfectly competitive industry. Show the industry output and price in the long run. What are the profits of a firm in a perfectly competitive industry? A firm operates on increasing returns to scale (monopolistically competitive firm). Assuming constant marginal costs explain the shape of the Average Cost Curve (AC)? Draw the AC, MC and Demand curves...
Question 2 2.1.     Using average and marginal cost curves and average and marginal revenue curves show...
Question 2 2.1.     Using average and marginal cost curves and average and marginal revenue curves show a firm in a perfectly competitive market in short run making and maximising its profit. (Draw a diagram and explain it.) 2.2.     Using average and marginal cost curves show a firm in a monopolistically competitive market making a loss whilst simultaneously behaving rationally in the short run. (Draw a diagram and explain it.) 2.3.     Explain the Prisoner’s Dilemma. (You can use a pay-off matrix...
A movie theater has a cost function which entails the rent of the commercial building of...
A movie theater has a cost function which entails the rent of the commercial building of $50 per day (fixed cost) and a marginal cost of $5 per viewer. There are eight potential viewers (four of them are students and four are not) with buyer values given in the table below: Students Others $19 $22 $13 $18 $11 $16 $3 $10 A) Assume that the movie theater cannot price discriminate and has to decide on the price it charges all...
You have an income of $80 to spend on movie tickets and the composite good (all...
You have an income of $80 to spend on movie tickets and the composite good (all other goods), Y. Movie tickets cost $8 per ticket and Y costs $16 per unit. Write an equation for your budget constraint. If you spent all your income on movie tickets, how much could you buy? What is the opportunity cost of movie tickets in terms of Good Y? If you spent all your income on Good Y, how much could you buy? Graph...
You have an income of $80 to spend on movie tickets and the composite good (all...
You have an income of $80 to spend on movie tickets and the composite good (all other goods), Y. Movie tickets cost $8 per ticket and Y costs $16 per unit. Write an equation for your budget constraint. If you spent all your income on movie tickets, how much could you buy? What is the opportunity cost of movie tickets in terms of Good Y? If you spent all your income on Good Y, how much could you buy? Graph...
Let demand for tickets to the movies in Adelaide in summer months be represented by the...
Let demand for tickets to the movies in Adelaide in summer months be represented by the following demand schedule: price $ quantity demanded (per summer month) 20 0 18 100 16 200 14 300 12 400 10 500 8 600 6 700 4 800 2 900 Suppose that all movie theatres are owned by one company such that movie tickets are supplied by a monopolist, with a constant marginal cost of $4.    a) Calculate what number of movie tickets...
BYou are running a football program at a large Texas university. Your program has been losing...
BYou are running a football program at a large Texas university. Your program has been losing money and you therefore want to work out the profit maximizing price for tickets. You hire a consultant who calculates that you face the following demand curve for season tickets for each game: Qd= 144,000 – 240P He notes that you have a very large stadium (92,589) seats that is never filled. He also notes that most of the costs that your football program...
Harry runs a small movie theater, whose customers all have identical tastes. Each customer’s reservation price...
Harry runs a small movie theater, whose customers all have identical tastes. Each customer’s reservation price for the movie is $5, and each customer’s demand curve for popcorn at his concession stand is given by Pc=4-Qc, where Pc is the price of popcorn in dollars and Qc is the amount of popcorn in quarts. If the marginal cost of allowing another patron to watch the movie is zero, and the marginal cost of popcorn is $1, at what price should...
Nimbus, Inc. makes brooms and then sells them door-to-door. The table below demonstrates the relationship between...
Nimbus, Inc. makes brooms and then sells them door-to-door. The table below demonstrates the relationship between the number of workers and Nimbus’s output in a given day. The firm experiences fixed costs of $200, and its variable cost (workers) is $100 per worker per day. The broom industry is perfectly competitive. Fill in the table below: Number of Workers Brooms (Total Output) Q Marginal Product MP Fixed Cost FC Variable Cost VC Total Cost TC Avg Fixed Cost AFC Avg...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT