Fullah Playhouse, a theatre company in Kuwait city, caters to two groups of customers: students and the non-student population. Figure 12-2 shows the demand curves for the two groups of customers. -Refer to Figure 12 -2. Suppose Fullah Playhouse charges a single price of P_dfor each performance. Which of the following statements is true? A) The company is selling less than the profit -maximizing quantity in both markets. B) The company is selling more than the profit -maximizing quantity in the non -student market and less than the profit -maximizing quantity in the student market. C) The company is selling less than the profit -maximizing quantity in the non -student market and more than the profit -maximizing quantity in the student market. D) The company is selling less than the profit -maximizing quantity in both markets but it is maximizing its revenue.

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The Answer of Fullah Playhouse, a theatre company in Kuwait city, caters to two groups of customers: students and the non-student population. Figure 12-2 shows the demand curves for the two groups of customers. -Refer to Figure 12 -2. Suppose Fullah Playhouse charges a single price of P_dfor each performance. Which of the following statements is true? A) The company is selling less than the profit -maximizing quantity in both markets. B) The company is selling more than the profit -maximizing quantity in the non -student market and less than the profit -maximizing quantity in the student market. C) The company is selling less than the profit -maximizing quantity in the non -student market and more than the profit -maximizing quantity in the student market. D) The company is selling less than the profit -maximizing quantity in both markets but it is maximizing its revenue.

Fullah Playhouse, a Theatre Company in Kuwait City, Caters to Two