Question
In: Economics
ErdemS (ES) is a monopoly selling tickets for the football match of SileSpor. The demand for...
ErdemS (ES) is a monopoly selling tickets for the football match of SileSpor. The demand for each ticket is P = 350 - Q. ES’s cost is $10,000 plus $50 per ticket. (i.e., C(Q)=10.000+50Q ).
a) What is the profit-maximizing price that ES will charge? How many tickets will be sold? What is ES’s profit for this match?
b) Next ES finds out that non-students (Type A) and students (Type B) have different demands: Let PA = 650 - 5QA stand for the demand function of Type A; and let PB =350-3QB stand for the demand function of Type B. Suppose that ES utilizes price discrimination and asks different prices to each type.
What is the price charged to a non-student (Type A)? What is the price charged to a student (Type B)? How many of each type are on this match? What would ES’s profit be for this match?
Solutions
Rahul Sunny answered 1 month agoRelated Solutions
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