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Consider the movie ticket and popcorn example discussed in Section 17.7. The theater sells two products,...

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Advance Math

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?

    $.

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