Evaluating the 'Free Entry' Argument for Uncrowded Cinemas
A city official argues, 'Since a movie screening in an uncrowded cinema has a near-zero cost for an additional viewer, the cinema should be forced to let people in for free once the film has started. It is economically inefficient to have empty seats.' Critically evaluate this argument. In your response, discuss the validity of the official's point about inefficiency for that single screening, and then analyze the potential long-term consequences for the cinema if such a policy were implemented.
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Social Science
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CORE Econ
Economy
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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Evaluating the 'Free Entry' Argument for Uncrowded Cinemas