A multiplex movie theater calculates the week-end demand for afternoon shows to be D(p) = 1000-80p and demand for evening shows to be D(p) = 1000-50p. The maximum seating capacity of theater is 550 and marginal cost is zero (e.g., the variable costs are covered by pop-corn sales)
1. Should the theater charge same price of different prices for afternoon and the evening shows?
2. Calculate the profit maximizing price that the theater should charge?