C. GenPIex is a movie theater in a small city. If the theater is open. the owners have to pay a fixed nightly amount of $500 for films. ushers, and so on, regardless of how many people attend. If the theater is closed, its costs are zero. The nightly demand for movies by college students is (D5 = 220 - 40P5, where as is the number of movie tickets demanded by students at price P5. The nightly demand for movies by nonstudents is On = 140 - 20F". (1) Assume GenPlex charges a single price Pto everyone a. What is the aggregate demand function 0(P) for movies? What is the inverse demand function P(O)? b. What is the profit-maximizing Q? What is the profit-maximizing P? What is rr(profits)? How many tickets are sold to students? How many to nonstudents? (2) Now assume that the ticket seller can accurately separate students from nonstudents (e.g.. by having students show a nonforgeable college photo i.d.). Students cannot resell their tickets. a. What is 05 and what price P5 is charged to students? What is On and what price Pn is charged to nonstudents? b. What is rr now? (3) Why do movie theaters charge so much for refreshments? Can you give an explanation of this based on any of the theories in Chapter 26