Consider a town with a single movie theater,and that movie theater faces a downward sloping demand curve for its tickets.The movie theater has a fixed number of seats available for each show but the marginal cost of filling a seat is zero.Why might it be in the movie theater's interest to not to sell out every show even though the marginal cost of selling additional seats is virtually zero? (A graph will help your answer).

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The Answer of Consider a town with a single movie theater,and that movie theater faces a downward sloping demand curve for its tickets.The movie theater has a fixed number of seats available for each show but the marginal cost of filling a seat is zero.Why might it be in the movie theater's interest to not to sell out every show even though the marginal cost of selling additional seats is virtually zero? (A graph will help your answer).

Consider a Town with a Single Movie Theater,and That Movie