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O Macmillan Learning Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the time of attendance and willingness to pay for a ticket. Customer Maximum willingness to pay Time of attendance Brandon $2 matinee Tyler $30 evening Austin $15 evening Alexis $6 matinee Ashley $20 evening Emily $14 matinee What should the theater charge for evening tickets? What should the theater charge for matinee tickets? $

O Macmillan Learning Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the time of attendance and willingness to pay for a ticket. Customer Maximum willingness to pay Time of attendance Brandon $2 matinee Tyler $30 evening Austin $15 evening Alexis $6 matinee Ashley $20 evening Emily $14 matinee What should the theater charge for evening tickets? What should the theater charge for matinee tickets? $

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter18: Asymmetric Information
Section: Chapter Questions
Problem 18.3P
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O Macmillan Learning Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the time of attendance and willingness to pay for a ticket. Customer Maximum willingness to pay Time of attendance Brandon $2 matinee Tyler $30 evening Austin $15 evening Alexis $6 matinee Ashley $20 evening Emily $14 matinee What should the theater charge for evening tickets? What should the theater charge for matinee tickets? $
Transcribed Image Text:O Macmillan Learning Suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. Suppose the marginal cost of serving an additional customer is $1.50. The data provide information about the time of attendance and willingness to pay for a ticket. Customer Maximum willingness to pay Time of attendance Brandon $2 matinee Tyler $30 evening Austin $15 evening Alexis $6 matinee Ashley $20 evening Emily $14 matinee What should the theater charge for evening tickets? What should the theater charge for matinee tickets? $
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