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Y6 1. The Grand Theater is a movie house in a college town. If the theater is open, the owner has to pay a fixed

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1. The Grand Theater is a movie house in a college town. If the theater is open, the owner has to pay a fixed nightly amount of $200 for lms, ushers, and so on, regardless of how many people come to see the movie. If the theater is closed, the owner incurs no costs. The nightly demand for movies by students is Ds(p) = 180 45p and by nonstudent moviegoers is D\" (p) = 100 5p. (a) Assume the Grand Theater charges a single price to everybody What is the profit maximizing price and how many tickets are sold to students and nonstudent moviegoers? (b) Suppose the cashier can separate students from nonstudents at the door by making students show their ID cards and students cannot resell their tickets. Then the Grand Theater can increase its prot by charging students and nonstudents different prices. What prices will the Grand Theater charge and how many tickets will be sold to students and nonstudent moviegoers

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