THE MUSICAL cоmpаny runs а brоаd-way musical in a theater with 150 seats. Its fоrecast of the demand of the show is 100 people on any given day. The musical fans are usually willing to pay $200 for the show when they are in the mood for the show but they are willing to pay only $100 when they are not. One market research shows that on any given day, a musical fan is in the mood for the show in 70% of the time. What is the optimal pricing strategy of the company? (There is no variable cost that changes with the size of audience. So you can ignore the cost in this calculation.)
THE MUSICAL cоmpаny runs а brоаd-way musical in a theater with 150 seats. Its fоrecast of the demand of the show is 100 people on any given day. The musical fans are usually willing to pay $200 for the show when they are in the mood for the show but they are willing to pay only $100 when they are not. One market research shows that on any given day, a musical fan is in the mood for the show in 70% of the time. What is the optimal pricing strategy of the company? (There is no variable cost that changes with the size of audience. So you can ignore the cost in this calculation.)
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