Part 1: Q. The promoters of a major basketball tournament try to segment their tickets into two groups:I Adults Tickets, with a Demand: O 5000-10PIL Student Tickets, with Demand: Qs =10000-100PThe promoter's Marginal Cost per ticket is same for all output levels as $10 Please answer the following:For Price Segment Adults Tickets:a Write the Inverse Demand Curve and Marginal Revenue Curve FunctionsInverse Demand Curve Function P=500-0.10Marginal Revenue Curve Function: P 500-0.20b. Determine the Profit Maximizing Quantity, Q* and Price, P* MC-MR 10 =500-0.20 Or. 0=2450 =P=$255Determine the Revenue to be generated with O* and P*C Revenue=Q*xP* Or, Revenue,- 2450 x 255 $624,750d. Determine the Producer Surplus (Hint: The area is a rectangle; not a triangle!) PS (255-10) x 2450 $600.250II For Price Segment Student Ticketsa Write the Inverse Demand Curve and Marginal Revenue Curve Functions Inverse Demand Curve Function: Pe 100-0.010Marginal Revenue Curve Function: Pc 100-0.020b. Determine the Profit Maximizing Ouantity. O and Price. P MC-MR 10-100-0.020. Or. 0 4500-P-$55c. Determine the Revenue to be generated with Q and P* RevenueQ* xP* Or, Revenues =4500 x55 $247,500d. Determine the Producer Surplus (Hint: The area is a rectangle; not a triangle) PS (55-10) x4500-$202.500What is the Total Quantity (number of tickets sold to both groups), Total Revenue and Total PSgenerated for the two segments?TO=0+Q, 2450+4500 = 6950 (number of tickets sold to both groups)TR-TR+TR=$624.750+$247,500 =$872,250PS-PS+PS =$600,250+$202,500 = $802,750IV. Suppose, instead of segmenting, the Promoters plan to follow perfect price discremination with the help of a combined demand functiona, What will be the new Demand Function (combine both demand functions)?Q-15000-110Pb, What will be the combined Inverse Demand and Marginal Revenue Functions? c, If the sponsors like to sell the same total number of tickets that would be sold through segmenting (as per part III), What will be the price (or prices) under perfect price discrimination and Total Revenue and Producer Surplus generated? How these values differ from answers to Part III, i.e. from segmenting? d. If the promoters like to increase the number of tickets to maximum possible with the perfect price discrimination, what will be price(s), Total Revenue and Producer Surplus generated? How the values differ from answers to part III from segmenting?Part 3: Suppose the two groups with their respective demand are promoted by two form two distinct firms and thus are two markets and the firms can be monopolists in these markets. i What will be the Quantity and Price of tickets sold in each market if the monopolists are single price monopists? What will be their TR and PS? (Hint. All these numbers you already have in one of your earlier part)ii. If they can practice perfect price discrimination, whiat will be the Quantity and Price(s) of tickets sold by each firm, Total Revenue and Producer Surplus of each firm?iii. Suppose, the firms have to supply only 5000 tickets, will collussion to supply those tickets be beneficial to either or both of firms? (Assume the firms are single price monopolists and not follwing perfect price discrimination)a If they do not collude, what will be each firm's quantity, price, TR and PS? (This information is already there in earlier part)b. If they collude, what will be the quantity, price, TR and PS by each firm? Who will benefit and who not? Why they would collude or why won't? (Some information on based on combined demand exist in earlier parts.Part 2: Photo

Suppose, the promoter plan to sell only 5000 tickets to the two groups. How the tickets will be allocated among the two groups if segmenting is used? That is, how many tickets are to be sold to adult group and how many to student group so as to maximise the total producer surplus from both groups (and Total Revenue)? Quantity (number of tickets) for Adults: 2450 tickets Quantity (number of tickets) for students: 11. At what prices those tickets are to be sold? Price for Adults: Price for Students: iii. What will be the total revenue generated from selling those 5000 tickets? iv. Is it a good decision to restrict the number of tickets to 5000? Please fill-in the following table and provide your observation. Your observations may target acieving higher revenue or PS or increasing revenue per ticket or comparing percentages etc. NB: For part II, consider only segmenting as option and not perfect price discrimination. Adults Students Total Number of Tickets Part I Profit Maximizing Quantity Part II Share of 5000 tickets sold Percentage of max tickets sold Total Revenue Part I TR at Profit Maximizing Quantity Part II TR at Share of 5000 tickets sold Percentage of max revenue achieved Producer Surplus Part I PS at Profit Maximizing Quantity Part II PS at Share of 5000 tickets sold Percentage of max PS achieved