EJH Cinemas, a movie theater next to your university, attracts two types of cust

Question

EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area There are 10, 000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket There are 20, 000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket The movie theater incurs a constant marginal cost of $4 per ticket For simplicity, assume each customer purchases, at most, one ticket What will be the amount of EJH Cinemas' total revenue if the price is $9 per ticket? $250, 000 $210, 000 $180, 000 $140, 000 S105,000

Explanation / Answer

Answer is $ 180,000

Total revenue = Price X Quantity = $ 9 X 20,000 = $ 180,000

10,000 university customers will not purchase the tickets because price of ticket is more than their willingess to pay.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.