(1) The Grand Theater is a movie house in a medium-sized college town. This theater shows unusual lms and treats early-arriving movie;goers to live organ music and Bugs Bunny cartoons. If the theater is open, the owners have to pay a xed nightly amount of $500 for films,ushers, and so on, regardless of how many people come to the movie.;For simplicity, assume that if the theater is closed, its costs are zero. The;nightly demand for Grand Theater movies by students is Qs = 220?40Ps;where QS is the number of movie tickets demanded by students at price;Ps. The nightly demand for nonstudent moviegoers is Qn = 140?20Pn.;Suppose that;the Grand Theater can hold only 150 people and that the manager;wants to maximize prots by charging separate prices to students and;to nonstudents. If the capacity of the theater is 150 seats and QS;tickets are sold to students,the maximum number of tickets;that can be sold to nonstudents? QN = 150? QS.;Question;How many student tickets should the Grand sell to maximize profits?;What price;is charged to students?
Paper#28774 | Written in 18-Jul-2015Price : $27