Question 7 please

5. Assume that the maximum values to theater owners for me theater values A at $100 and B at $70. The York Theater values A al soo and B at $50. Is blond booking more profitable than charging a single price for each movie? Explain. 6. for the model of tying, assume there are instead two firms that offer product B2 at cost CB. Derive 7 . the conditions for tying to be profitable. Consider a problem faced by Kamera Company. They have developed a patented new camera that can be produced at a constant unit cost of $1. The film is available competitively at a zerg price. Consumers derive utility only from the combined services of the camera and film-which can be measured by packs of film consumed per period. Assume that there are two consumers with inverse demands: p1 =8-491/3 and p2=12-3q2/2. a. Consumers will purchase only one camera at most; hence, consumer surplus can be viewed as measuring what they would be willing to pay for a camera. If Kamera must charge both customers the same price for a camera, what is the price it will charge, and what is its profit? D. Assume now that Kamera decides to tie film to its camera. It requires customers to purchase film from Kamera if they wish to buy a camera. Kamera simply buys film on the market at the zero price and resells it. What are the prices of camera and film that Kamera will charge, and what is its profit? Is tying profitable? c. Compare total economic surplus in part a with that in part b. d. If customer 2 has a different demand curve, say, p2=10-592/4, it reverses the result in part c What is the intuitive reason for this reversal