SummaryGolden Village was originally the only cinema located in the west of Singapore. However, it now faces competition from two new cinemas, Shaw's Cineplex and Cathay Cineplex, due to the opening of Jcube and Jem. For moviegoers, this is a good thing because they have more choices. Considerations such as price, comfort, cleanliness, sound and picture quality as well as the range of films offered will determine which cinema customers will visit. On the other hand, all three cinemas strive to provide the best cinema experiences to their customers so as not to lose out to the competition. Competitive Situation of the Industry Singapore's film industry is dominated by a few large companies, including Cathay Cineplexes, Golden Village, Shaw Cinemas and Filmgarde Cinemaplexes. All cinemas are air-conditioned and have comfortable seats with spacious legroom. The films shown in each cinema are also similar. Cinema operators do not compete on price and therefore cinema ticket prices are generally similar across different cinemas. They are basically charged based on the type of movie as well as the day and time of the week a movie is watched. Cinema operators often engage in non-price competition to capture more market share. With increasing competition, cinema operators have created high-end cinemas and offer different services to better differentiate themselves. For example, Cinema Europa in Golden Village screens international films that are not usually shown in Singapore. Shaw's IMAX digital theater system features premium picture and sound systems that provide moviegoers with an immersive experience (Shaw, 2012). Cinemas have also come up with different promotion plans...... middle of paper ...... appendix E, cinema operators maximize their profit where marginal cost equals marginal (MC = MR) , or 200 units in total. This production must then be distributed between the two markets so that MC=MR on each market. The profit-maximizing price in each market will be determined by the relevant demand curve. So, in market A, 100 units will be sold at $9, and in market B, 100 units will be sold at $7 each. The market demand curve reflects the combined willingness and ability of many individuals to buy. Some individuals are willing and able to purchase a movie ticket at prices above the market price, while others are willing and able to purchase at lower prices. Cinemas are able to increase their total profit by selling their movie tickets at the price each consumer is willing to pay, because they can capture some or all of the consumer surplus in the form of additional revenue..