Uber charges a price per mile of $4. they are considering a game day surge price strategy.

Estimated demand functions : Group 1 rides before game Q1=500-100P1 Group 2 riders after the game Q2=1000-100P2

Ubers marginal cost per mile is $1.

3rd degree price dissemination strategy:

1. what is the profit maximizing price to charge for before game rides?

2. what is uber's profit for before game rides?

3. what is the profit maximizing price to charge for after game rides?

4. what is ubers prfit for after game rides?

5. Do you think it is a good idea for uber to implement a 3rd degree price discrimination strategy?