Consider a movie theater monopolist who faces the same demands from students and other adults as the

Question:

Consider a movie theater monopolist who faces the same demands from students and other adults as the monopolist in Worked-Out Problem 18. 2 but who has cost function C(Q) = Q + 0.005Q2, where Q is the total number of tickets sold (equal to the sum of student tickets and other adult tickets). What is the monopolist's best price if discrimination is not possible? What are her best prices if discrimination is possible? What is the effect of discrimination on aggregate surplus? On consumer surplus? What would happen to the student price under price discrimination if the demand if other adults increases to QdA = 1,800 - 100P

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

Question Posted: