Why Would a Movie Theater with Some Seats Still Available

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The Answer is Movie theaters have high fixed costs and serves different moviegoers at each showing.The marginal costs of showing a movie are few while fixed costs are high.If moviegoers knew they could walk in at the last minute and pay far less than the regular price, why would they come early and pay the higher price? After all, they would only miss the pre-film commercials.The only reason a moviegoer would pay in advance is to guarantee a seat, probably on opening day.This practice would begin to shape consumer beliefs about the value of their services, and the companies would not be able to stay in business at the special lower prices.

Why Would a Movie Theater with Some Seats Still Available

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Why Would a Movie Theater with Some Seats Still Available

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