5) A movie monopolist sells to college students and other adults. The demand function for students is

QdS=1,000−100P,QSd=1,000−100P,

and the demand function for other adults is

QdA=3,500−100P.QAd=3,500−100P.

The marginal cost is $2 per ticket.

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 = $.
The profit is high with discrimination
b. What prices will the monopolist set when she cannot discriminate? How will it affect her profit?

P_everyone = $ per ticket.

Profit = $.

Profit is low with discrimination

Answer rating: 100% (QA)

a P student 6 per tick... View the full answer