+1 (208) 254-6996 [email protected]
  
Instructions

You are continuing to serve as a  private economic consultant for Ruby Red Movie Theater in town. The  theater is starting to work on its marketing plan to draw more customers  into the theater. Manager Tracy has provided you with the necessary  information concerning various characteristics of the theater’s market. Complete the Unit VI Assignment  Worksheet. This worksheet contains information and a series of questions  concerning the market structure for the theater. Each of your answers  must be at least 300 words in length. APA Style will not be required for this assignment. Once you have completed the worksheet, upload your completed Unit VI Assignment for review. 

Unit VI Assignment Background Information

Don't use plagiarized sources. Get Your Custom Essay on
Unit VI Assignment
Just from $13/Page
Order Essay

Ruby Red Theater is now starting to work on its marketing plan to draw more customers into the theater. Manager Tracy has provided you with the following information and asked for your help:

· There are four movie theaters in the town (Ruby Red, Grayson’s Guild, Ryne’s Reel 2 Reel, and Garrett’s Dollar Movies).

· The city has passed a law banning any other movie theaters from building within the city limits.

· All movie theaters offer similar types of concession stand items at similar prices.

· The average ticket prices per movie at each theater are:

Movie TheaterAverage Ticket Price
Ruby Red Movie Theater$10.00
Grayson’s Guild Movie Theater$8.00
Ryne’s Reel 2 Reel Movie Theater$8.00
Garrett’s Dollar Movies$1.00

· The first movie and last movie start times for the four theaters are:

Movie TheaterFirst Start TimeLast Start Time
Ruby Red Movie Theater12:00 noon11:00 p.m.
Grayson’s Guild Movie Theater10:00 a.m.11:00 p.m.
Ryne’s Reel 2 Reel Movie Theater10:00 a.m.11:00 p.m.
Garrett’s Dollar Movies12:00 noon11:00 p.m.

· The average number of people who purchase tickets at each movie theater in town per month is:

Movie TheaterAverage Monthly Movie Ticket Sales
Ruby Red Movie Theater15,000
Grayson’s Guild Movie Theater23,000
Ryne’s Reel 2 Reel Movie Theater25,750
Garrett’s Dollar Movies25,200

· Grayson’s Guild and Ryne’s Reel 2 Reel offer a special “Two-for-One Tuesday” where you can purchase two tickets for the price of one.

· Grayson’s Guild and Ryne’s Reel 2 Reel just purchased the latest Goldby Surround Sound for their movie theaters.

· You recall that your economics instructor at Columbia Southern University had presented you with a table that outlined the four market structure types and their characteristics. After searching through your old notes from Columbia Southern University, you found the table, which is presented below:

CharacteristicPerfect CompetitionMonopolistic CompetitionOligopolyMonopoly
Number of FirmsVastManyFew Dominant FirmsOne
Type of ProductHomogeneousDifferentiatedDifferentiatedUnique, Limited, No Close Substitute
Size of FirmRelatively SmallRelatively SmallAverage to LargeLarge
Market ShareSmallSmallAverage/HighAbsolute
Barriers to Entry and ExitNoneLowHighExtreme
Price-Setting PowerNone, Price TakerLow, Price MakerHigh, Price MakerHigh, Price Maker
Long-Run Economic ProfitsNoneNonePossiblePossible

Answer the questions on the next page. Your answers must be a minimum of 300 words in length for each question.

Unit VI Assignment

Part 1:

Using the provided table that outlined the various characteristics of each market structure type and the information provided by Manager Tracy from Ruby Red Movie Theater, define the market structure (perfectly competitive, monopolistically competitive, oligopoly, or monopoly) for the movie theater market of this town. Discuss each market structure characteristic as it either relates or does not relate to the movie theater market for this town. Make sure you address all four market structures and each market structure characteristic in your discussion.

If you need additional space, please feel free to insert an additional page.

Answer:

Part 2:

Given the market structure you have identified for the movie theater industry in this town, what marketing ideas would you recommend for Ruby Red Movie Theater?

If you need additional space, please feel free to insert an additional page.

Answer:

Part 3

Grayson’s Guild Movie Theater has made an offer to purchase Ryne’s Reel 2 Reel Movie Theater. The merger would result in both theaters operating under the same business ownership. What problems would this merger cause for Ruby Red Movie Theater? Could the government have issues with this merger?

If you need additional space, please feel free to insert an additional page.

Answer:

Order your essay today and save 10% with the discount code ESSAYHELP