Price Discrimination-Question 3:Following is the willingness of 4 students to pay to use the time machine.

1. Student A wants to travel back in time to see the dinosaurs and willing to pay as much as $200.
2. Student B wants to relive this entire semester; she is willing to pay up to $150.
3. Student C can't wait for the semester to end; he is willing to pay as much as $125.
4. Student D just wants to get through this class period; she is willing to pay up to $100.

The demand curve for time travel is: For simplicity, let the MC= $100 is constant.

Price	Quantity	TR	MC	MR
$200	1
150	2
125	3
100	4

1. If Time Travel was a competitive industry, what is the profit maximizing quantity of output (number of trips in this case)?

1. Assume that Time Travel is a patented product, giving the firm complete monopoly control. What will be the monopolist's profit maximizing output and price?

1. The price discriminating monopolist will charge each consumer his maximum willingness to pay. What happens to TR, MR in this case? How will the profit of the monopolist change? Hint: The price is now different for each customer so you should make a new table with P, Q, TR, and MR to find the profit.

Price	Quantity	TR	MR
	1
	2
	3
	4