Question

Many movie theaters charge price for the first show on weekday afternoon than for a weeknight or weekend show. Explain.

Answer 1

Because usually in weekday afternoons, there is less probability that many people will turn up for the show as most of the population would be engaged in work or studies. But there will be some people who turn up for the show though in less numbers and due to that, the theaters are obliged to play the movie. Hence the opportunity cost of the theater will be the same if there are 200 people or 50 people.

So in order to attract more people to watch the movie on weekdays, theaters reduce the cost of ticket as an incentive. That is the reason why most theaters charge the audience according to the show timings and occupancy.