Seven potential customers are interested in seeing a movie. Since the marginal cost of admitting additional customers is zero, the movie theater maximizes its profits by maximizing its revenue:Customer Maximum willingness to Pay AgeAllison $8 66Becky 11 34Charlie 6 45David 7 16Erin 6 9Franco 10 28Grace 9 14a. What price would the theater charge if it could only charge one price? b. If the theater could charge two prices, what prices would it choose? Which customers would pay the higher price, and which would pay the lower price?
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