3.Profit Maximization with third-degree price discrimination

Continuing the previous question, work out what profits will be with third degree price discrimination where you charge students and alumni different prices.

For students, demand is

Qs (Ps)= 80,000 - 200Ps

We will divide total costs evenly between students and alumni.Total costs for students are therefore:

TC (Q)= $10,000,000

A.(3 points) What is the profit maximizing level of output (Q_s*) for students

Note:Q* is a round number in thousands.

So please round your answer to the nearest 1000

B.points) What is the price that you charge at the profit maximizing level of output (P_s*) for students?

C.(3 points) Calculate profits that you get from selling tickets to students