Question
A movie monopolist sells to college students and other adults. The demand function for students is QdS=1,520100P,=1,520100, and the demand function for other adults is
A movie monopolist sells to college students and other adults. The demand function for students is QdS=1,520100P,=1,520100, and the demand function for other adults is QdA=1,800100P.=1,800100. Costs is C(Q)=1Q+0.005Q2mper ticket,()=1+0.0052per ticket, where Q = QS + QA. Instructions:Round your answers to 2 decimal places. a. What prices will the monopolist set when she can discriminate? Pstudent = $ per ticket. Padult = $ per ticket. Profit = $ . b. What if demand for adults increases to QdA=2,000100P?=2,000100? Pstudent = $ per ticket. Padult = $ per ticket. Profit = $ .
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