As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function isP= 20 - 0.001Q; on weekdays, it isP= 15 - 0.002Q.You acquire legal rights from movie producers to show their films at a cost of $25,000 per movie, plus a $2.50 "royalty" for each moviegoer entering your theaters (the average moviegoer in your market watches a movie only once).

What type of pricing strategy should you consider in this case?

multiple choice

• Second degree price discrimination
• First degree price discrimination
• Third degree price discrimination
• Block pricing

What price should you charge on weekends?

Instruction:Enter your response rounded to two decimal places.

$____________

What price should you charge on weekdays?

Instruction:Enter your response rounded to two decimal places.

$___________