Suppose that the demand function of student moviegoers is the same as in Worked-Out Problem 18.2, but
Question:
QdA = 3000 - 100P.
Marginal cost is still $2 per ticket. What prices will the monopolist set when she can discriminate and when she cannot? How will discrimination affect the monopolist's profit?
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When she can discriminate the monopolist will set prices of P student 500 per ticket P adult 1700 per ticket Profit 20500 When she cannot discriminate the monopolist will set prices of P everyone 1600 ...View the full answer
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