N1

2. Third Degree Price Discrimination. A nightclub owner has both male and female customers. The demand for drinks by a typical female Qr = 960-3P. The demand for drinks by a typical male is: QM=640-2P. The nightclub owner faces constant marginal cost of $8. 1. If the club owner could separate the groups and practice third-degree price discrimination, what price per drink would be charged to members of each group? 2. What would be the club owner's profit in this case