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The mayor of a small town wants to provide outdoor movie nights. These movies will be shown at the town square, open to every resident.
The mayor of a small town wants to provide outdoor movie nights. These movies will be shown at the town square, open to every resident. You can assume that the town square is big enough to fit all residents. The goal for the mayor is to find out the optimum number of movies to show in a given year. The town has 100 residents with identical individual (and annual) demand curves: = 4 1/10P, and the marginal cost of the movie is = 2000. Find the optimum number of movies.
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