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A movie theatre pays $ 5 , 0 0 0 to show a new action movie. Assume the marginal cost of showing the movie is
A movie theatre pays $ to show a new action movie. Assume the marginal cost of showing the movie is zero. Theatre management realizes they have two groups of customers for this movie: the super fans who will pay up to $ to see the movie and easygoing fans who will pay up to $ to see the movie. If the movie theatre can NOT price discriminate their maximum profit will be If the theatre can price discriminate their maximum profit will be
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