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.

If the owner can "card" patrons and determine who is a graduate student or professor and, in turn, can serve each group by offering a cover charge and a number of drink tokens to each group, which allows them to purchase drinks at marginal cost, what will the cover charge be for graduate students?

52

27

49

14