The fact that Rick paid just $8 to see the 11:30 a.m. showing of the latest Hobbit movie while his friends paid $14 to see the same movie at a 7 p.m. showing is an example of a cinema addressing the problem of:

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This is an example of a cinema addressing the problem of perishability. Movie theater seats are perishable in the sense that once a movie showing time passes, the opportunity to sell tickets for that particular showing is gone forever. By offering lower prices at less popular times (like 11:30 a.m.), the cinema can attract more customers during these times, thus maximizing revenue and minimizing wasted capacity.

The Fact That Rick Paid Just $8 to See the 11:30