Question
A movie monopolist sells to college students and other adults. The demand function for students is QdS=1,040100P, 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=1,040100P, and the demand function for other adults is QdA=1,600100P. Costs is C(Q)=1Q+0.005Q2mper ticket=1Q+0.005Q^2mper 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=1,800100P?=1,800100? Pstudent = $ per ticket. Padult = $ per ticket. Profit = $ .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started