Consider the movie ticket and popcorn example discussed inSection 17.7. The theater sells two products, tickets and popcorn.Suppose the weekly demand for movie tickets is
Qdtix=500?25Ptix?20Ppopcorn,
where Ptix andPpopcorn are the prices of a ticketand a bag of popcorn, respectively. Suppose that each time amoviegoer buys a ticket, his demand for popcorn is
Qdpopcorn=3?0.4Ppopcorn,
where Qdpopcorn is the number ofbags of popcorn the moviegoer buys. Suppose further that thetheater's marginal cost of a ticket is $2, while the marginal costof popcorn is $3.
Instructions: Round your answer to 2 decimalplaces.
a. What is the profit-maximizing price of a movie ticket if a bagof popcorn sells for $5 a bag?
$.
