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James sells poems on the boardwalk in Venice Beach. The market consists of awesome people who have inverse demand p to the power of A
James sells poems on the boardwalk in Venice Beach. The market consists of awesome people who have inverse demand p to the power of A equals 10 space minus q to the power of Aand boring people who are equally numerous and who have inverse demand of p to the power of B equals 6 minus q to the power of B. The cost of producing poems is C o s t equals 2 Q plus 2. If James is unable to distinguish between awesome people and boring people, what price should he set? [a1] How much profit will he earn? [a2] Over the years James has learned to tell the difference between awesome people and boring people, enabling him to charge them different prices. What prices will he charge to awesome people? [a3] What price will he charge to boring people? [a4] How much profit will he earn? [a5] James is still working on honing his skills. If he were able to perfectly price discriminate within both groups, how much profit would he earn? [a6]
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