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4. For questions 4(a) - 4(d) use the following information. Teatro alla Scala (La Scala), the famous opera house in Milan, Italy, has been experimenting

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4. For questions 4(a) - 4(d) use the following information. Teatro alla Scala (La Scala), the famous opera house in Milan, Italy, has been experimenting with their menu pricing. Your company has been hired to consult on the design of their ticket packages. The cost of the opera house can be regarded as sunk: given that an opera will be performed, the marginal cost of serving one more customer is zero. Thus you focus on maximizing revenue. From data on past ticket sales and survey information, you conclude that there are essentially two kinds of opera customers: A and B. The B types are more passionate about opera and willing to pay more for tickets than the A types. The customers' marginal WTPS are recorded in the following table: 1 2 3 4 Group Size B $55 $40 $38 $27 1000 A $30 $15 $13 $10 1000 As usual, assume that: i) any customer who is indifferent between more than one option chooses the option that the seller prefers; ii) each customer can buy at most one time (e.g. no customer can buy 1 ticket package more than once). (a) What is the revenue maximizing pricing schedule? (There are two types of buyers, A and B, so you need to specify a price-quantity pair for each type.) (b) What is La Scala's total revenue? (0) What is the consumer surplus that each group earns under this pricing scheme? (d) What is the deadweight loss generated by this pricing scheme

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