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2. Kinopark movie theater has two types of customers: students who are not willing to pay much to see a movie at the theater, and

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2. Kinopark movie theater has two types of customers: students who are not willing to pay much to see a movie at the theater, and reqular customers who have a higher willingness to pay. There are 100 customers of each type. Kinopark has excess seat capacity (more than 200 seats) and can show movies at both 5pm and 8pm at no additional cost. Both types of customers prefer to watch movies at 8pm rather than S5pm. The willingness to pay for each type of customers at the two possible times is shown in the table below: regulars students 8pm $15 $8 S5pm $7 $5 The marginal cost of an additional theater-goer is zero at either showing. Assume each individual attends at most one movie. (a) (5 points) Suppose Kinopark can tell students and regulars apart. Also suppose that it can set prices based on customer type (student or regular) and time of showing (5pm or 8pm). What prices will it set for each movie time and customer type? If it decides not to offer a particular time to a particular type of customer, indicate that as well. Explain in details for full credit. (b) (6 points) Now suppose that Kinopark cannot tell students and regulars apart. However, Kinopark can charge different prices for the 5pm and 8pm showings. How much will Kinopark charge for 8pm showing? How much will it charge for 5pm show- ing? Explain in details. () (6 points) Suppose that instead of 100 of each type of consumer, there are 150 student customers and only 50 regular customers. How does your answer to (b) change? Explain in details

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