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I'm legitimately stumped. 12. Consider the following two groups of consumers in the market for movie tickets Students and Working Adults. Suppose the Marginal Cost

I'm legitimately stumped.

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12. Consider the following two groups of consumers in the market for movie tickets Students and Working Adults. Suppose the Marginal Cost of selling to either group is the same and equal to $4. At the monopoly price for each group, demand elasticities are as follows: |Esl= 3 and |Ew|= 2 a. What is the Lerner Index of Market Power in the student market? b. What is the Lerner Index of Market Power in the Working Adult market? c. What is the monopoly price charged to Students? d. What is the monopoly price charged to Working Adults? e. Explain the relationship between the differences in Lerner index of the two groups and the difference in price to the two groups

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