Bart likes to go to the disco on Friday and Saturday nights. In his neighborhood, there are two discos, right next store to each other:

?Disco 2020 has a local disco band that plays all night. To enter Disco 2020, plays a cover charge to enter. However, Bart must purchase his root beers (his drink of choice) at the going price of $2.50, which is the marginal cost per root beer.

?Disco 1976 also has a local disco band that plays all night, and it is just as good at the one at Disco 2020. Disco 1976, however, offers its patrons discounted, 1976 prices - all root beers are $.50 each, with no limit how many one can purchase at this price. In order to implement this policy, however, Disco 1976 must charge a higher cover charge to cover costs.

Bart's a typical customer of these discos. His demand for root beers at either disco is given in the graphic listed below this assignment.

Given this information, please answer the following questions.

1.Assume the two discos are price takers and must cover their respective costs.

The cover charge for Disco 1976 is ____________ dollars higher than that of Disco 2020.

2.Bart should go to Disco _______?

3.Bart receives _____ dollars more in net surplus (benefits - all costs) by going to the disco you list in Question 2.