A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page...

A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page 635). The demand function for students is

          QdS=1,000−100P,

and the demand function for other adults is

          QdA=4,500−100P.

Marginal cost is $2 per ticket.

Instructions: Round your answers to 2 decimal places.

a. What prices will the monopolist set when she can discriminate? How will discrimination affect the monopolist's profit?

    P_student = $ per ticket.

    P_adult = $ per ticket.

    Profit = $.

b. What prices will the monopolist set when she cannot discriminate? How will it affect her profit?

    P_everyone = $ per ticket.

    Profit = $.

Solutions

Expert Solution

Colby Messinger answered 1 year ago

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