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 = 20 0.001Q; on weekdays, it is P = 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

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

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

$ 17.50 Numeric Response 1.Edit Unavailable. 17.50 incorrect.

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

$ 16 incorrect.