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Comments on: The marginal revenue of movies http://www.tvhe.co.nz/2007/09/24/the-marginal-revenue-of-movies/ The Visible Hand in Economics Fri, 25 Feb 2022 20:44:24 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Matt Nolan http://www.tvhe.co.nz/2007/09/24/the-marginal-revenue-of-movies/#comment-355 Sun, 30 Sep 2007 19:37:37 +0000 http://tvhe.wordpress.com/2007/09/24/the-marginal-revenue-of-movies/#comment-355 Exactly, that is what I was saying, there are different markets for R and G grade movies, different demand curves, and so you can’t just compare average revenues.

I agree that there are a number of factors that influence the expected payoff to investors from the movie, I believe I mentioned risk under the numbered reasons.

So ultimately I think we are saying the same thing, which is super 😉

]]> By: icehawk http://www.tvhe.co.nz/2007/09/24/the-marginal-revenue-of-movies/#comment-354 Sun, 30 Sep 2007 08:04:58 +0000 http://tvhe.wordpress.com/2007/09/24/the-marginal-revenue-of-movies/#comment-354 It’s much more complex.

There isn’t a market for movies. There are several different markets.

Consider (for example) the cheap horror film. Low-grade horror films that cost very little to make are highly likely to make money, because there’s a large rental market for them. Cheap family movies with only a handful of actors are _not_ likely to make money as there’s isn’t a large rental market.

That’s just one example: but it’s a very germane one for NZ because Peter Jackson used it to get going – and because the NZ Film Commission knows that example very well, which is why they keep funding cheap horror films, hence the large number of NZ films in the last few years that are budget horror films.

The question isn’t just about which (G or R) makes more money: it’s also about which type of film is riskier, which type can be done with less capital, etc.

]]> By: Investing » The marginal revenue of movies http://www.tvhe.co.nz/2007/09/24/the-marginal-revenue-of-movies/#comment-353 Mon, 24 Sep 2007 01:53:46 +0000 http://tvhe.wordpress.com/2007/09/24/the-marginal-revenue-of-movies/#comment-353 […] Scott Karp wrote an interesting post today onHere’s a quick excerptScott Adams has an extremely good understanding of economics (he did do a degree in it), however, in this case I feel that he has confused average and marginal revenue. Now the article states that the average revenue from a G-rated film … […]

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