Consider a movie theater monopolist who faces the same demands from students and other adults as the
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Consider a movie theater monopolist who faces the same demands from students and other adults as the monopolist in Worked-Out Problem 18. 2 but who has cost function C(Q) = Q + 0.005Q2, where Q is the total number of tickets sold (equal to the sum of student tickets and other adult tickets). What is the monopolist's best price if discrimination is not possible? What are her best prices if discrimination is possible? What is the effect of discrimination on aggregate surplus? On consumer surplus? What would happen to the student price under price discrimination if the demand if other adults increases to QdA = 1,800 - 100P
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When the monopolist can discriminate P student 725per ticket P adult 1125 per ticket Profit 3825 When demand increases P student 750 per ticket P adult 1250 per ticket Profit 4850 When adult demand in...View the full answer
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