A night-club owner has both graduate student and professor customers. The demand for drinks by a typical graduate student is Q_S=18-2P. The demand for drinks by a typical professor is Q_A=12-P. There are equal numbers of each. The marginal cost of each drink is $2. Assume no fixed costs.

What will profit be under third-degree price discrimination (same calculation as previous profit question)?

52

49.5

90

37.5