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The profit from a cinema ticket, once VAT is deducted, is split between the cinema chain and the distributor. The cinema chain sets the price

"The profit from a cinema ticket, once VAT is deducted, is split between the cinema chain and the distributor. The cinema chain sets the price of the ticket and the cost varies depending on several factors - from screen and seat size to the cost of renting the venue."

Suppose that:

  • Demand for a movie at a particular venue is described by

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