1. Suppose Aquims's Movie Theater a monopolist in the Lehigh Valley area, finds a way to determine if a potential buyer is a student or not. It uses this information to engage in group price discrimination on their gold purchases. (There are no supply constraints.)

The demand curve for non-students is QN = 64PN.

The demand curve for students is QS = 1803PS.

The marginal cost of allowing another movie-watcher into the theater is $4. It is also safe to assume ATC=$4

1. a. If Aquims's Movie Theater group price discriminates, what is the profit-maximizing quantity of gold and price for the students' group ( )?

1. b. If Aquims's Movie Theater group price discriminates, what is the profit-maximizing quantity of gold and price for the non-students group ( )?

1. c. What is Aquims's Movie Theater profit from price discriminating?

Note: you should be able to answer parts d and e without doing any calculations

d. Which of the following pricing scenarios would Aquim's Movie Theater (the producer) prefer? Why?

Single Price (No price discrimination)

Perfect Price Discrimination

Group Price Discrimination

e. Which of the above scenario's would be best for the whole economy (welfare)? Why?