Question
Q9. A movie distributor is facing two cities and is selling two movies. The reservation prices (RP) of the cities for each movie is in
Q9. A movie distributor is facing two cities and is selling two movies. The reservation prices (RP) of the cities for each movie is in the table below. She cannot explicitly price discriminate. Assuming her costs are negligible, what is the maximum revenues she can make? Choose prices and calculate the profit.
| City | RP for movie 1 | RP for movie 2 |
| A | $3 | $17 |
| B | $15 | $10 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Handbook Of Modeling High Frequency Data In Finance
Authors: Frederi G. Viens, Maria Cristina Mariani, Ionut Florescu
1st Edition
