A movie monopolist sells to college students and other adults. The demand function for students is Q
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Question:
A movie monopolist sells to college students and other adults. The demand function for students is
QdS=1,600−25P,QSd=1,600−25P,
and the demand function for other adults is
QdA=1,800−25P.QAd=1,800−25P.
The marginal cost is $2 per ticket.
a. What prices will the monopolist set when she can discriminate? How will discrimination affect her profit?
Pstudent = $ per ticket.
Padult = $ per ticket.
Profit = $.
b. What prices will the monopolist set when she cannot discriminate? How will it affect her profit?
Peveryone = $ per ticket.
Profit = $.
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