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 is P = 35 0.001Q; on weekdays, it is P = 25 0.002Q. You acquire legal rights from movie producers to show their films at a cost of $25,000 per movie, plus a $3.00 "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

a Second degree price discrimination

b Block pricing

c First degree price discrimination

d Third degree price discrimination

What price should you charge on weekends? Instructions: Enter your response rounded to two decimal places.

$ ???

What price should you charge on weekdays? Instructions: Enter your response rounded to two decimal places.

$ ???