answer of questions 1, 2, 3

Effective advertising has a very similar effect on consumer behaviour as does: Select one: O using multi-period pricing. O None of these is correct. O increasing the price of the good or service. O improving the quality of the good or service. P. P1 MC -AC D- AR Consider the firm with market power shown in the diagram above. The value of PO is equal to $24.5, the value of P2 is equal to $9.5, and the value of Q1 is equal to 79.0. The profit maximising price for the firm with market power pricing at a single price is P1, which is exactly halfway between PO and P2. You can calculate P1 by adding up PO and P2, and then dividing that number by two [i.e. P1 = (PO + P2)/2]. Q2 is exactly twice as big as Q1. You can calculate Q2 by multiplying Q1 by two [i.e. Q2 = Q1x2]. If this firm decided to move to two-part pricing, and wanted to maximise its' profits with that pricing strategy, what would be the size of the resulting profit (or producer surplus)? [Make sure to record your answer to at least two decimal places] Answer: Consumer: Willingness to pay for: Movie Ticket Popcorn April M1 May M2 P2 June M3 P3 Julie M4 P4 Consider four sisters (April, May, June, and Julie) who are going to the movies. The sisters' willingness to pay for a movie ticket and popcom are given in the table above (you can assume that the willingness-to-pay for a second item of the same type is zero). Assume that M1 is 8.32, M2 is 13.22, M3 is 16.56, M4 is 20.94, P1 is 8.72, P2 is 7.22, P3 is 6.82, and P4 is 5.25. What is the total revenue for the movie theatre, if they bundle the movie ticket and popcom together and set a price for the bundle that maximises total revenue