Question

If the owners charge a higher price of $16 for each movie, then they will have a total profit of (1). If the owners charge a lower price of $12 for each movie, then they will have a total profit of (2). If the owners choose to charge only a single price, then they should charge the (3) price; however, if the owners are able to price discriminate and charge both $12 and $16, then they will earn a profit of (4).

1. 1,200
2. 1,600
3. lower
4. 2,000

Answer 1

The answer is true. The statetement is correct.

Step-by-step explanation:

f the owners charge a higher price of $16 for each movie, then they will have a total profit of (1,200). If the owners charge a lower price of $12 for each movie, then they will have a total profit of ( 1,600). If the owners choose to charge only a single price, then they should charge the (lower) price; however, if the owners are able to price discriminate and charge both $12 and $16, then they will earn a profit of (2,000).