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A theatre that sells a ticket for a comedy show. The ticket price is 3 Rials...

A theatre that sells a ticket for a comedy show. The ticket price is 3 Rials to have a seat and watch the show. There is a snack to be given to each ticket buyer that cost 1 Rial. Now, consider this scenario: There are about 50 seats that are not sold and the show is few minutes to start and there is a standby customer willing to buy the ticket by price less than 3. What is the minimum price the theater can offer? Explain the logic about your answer.
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Answer #1

Original price of the comedy show is 3 Rials, which include the snack that cost of 1 Rial. So, the profit that theater makes from selling of 1 ticket is (3-1)= 2 Rials..

Now, if they have 50 vacant seats and need to sale the ticket in less than 3 Rials, then they have to incurred the cost of snack of 1 Rial for each ticket.

Hence the minimum price that the theater can offer for each ticket is 1 Rial..

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