Aristotle Murphy owns movie theatres in two towns of roughly the same size, 100 kilometers apart. In Monopolia, he owns the only chain of theatres…

Aristotle Murphy owns movie theatres in two towns of roughly the same size, 100 kilometers apart. In Monopolia, he owns the only chain of theatres (he is a monopolist). In Competitia, there is no theatre chain and he is only one of a number of independent theatre operators. Would you expect movie prices to be higher in Monopolia or in Competitia in the short-run? In the long-run? If differences occur in his prices, would Murphy be discriminating in price?

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