Question
A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page 635). The demand function for students is QdS=1,60025P,=1,60025, and
A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page 635). The demand function for students is QdS=1,60025P,=1,60025, and the demand function for other adults is QdA=2,00025P.=2,00025. Marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What prices will the monopolist set when she can discriminate? How will discrimination affect her profit? Pstudent = $ per ticket. Padult = $ per ticket. Profit = $ . b. What prices will the monopolist set when she cannot discriminate? How will it affect her profit? Peveryone = $ per ticket. Profit = $ .
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