Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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=2,00050P,=2,00050, 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=2,00050P,=2,00050, and the demand function for other adults is QdA=2,20050P.=2,20050. Marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem). 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 = $ 23.97 b. What prices will the monopolist set when cannot discriminate? How will it affect her profit? Peveryone = $ per ticket. Profit = $ .

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics For Contemporary Decision Making

Authors: Black Ken

8th Edition

978-1118494769, 1118800842, 1118494768, 9781118800843, 978-1118749647

Students also viewed these Economics questions