Question: answer for part 2 only thank you Problem 3: Menu Pricing. There are two types of fans of Kansas City Chiefs games: Enthusiastic {E} and

answer for part 2 only thank you

Problem 3: Menu Pricing. There are two types of fans of Kansas City Chiefs games: Enthusiastic {E} and Unenthusiastic (U). Each Enthusiastic fan has a representative demand curve given by PE = 120 5:123, and each Unenthusiastic fan has a representative demand curve given by Pr; = 120 SQU. The marginal cost of ticket production is constant at M0 = 40 for all consumers. 1. Suppose the Chiefs are perfectly distinguish between two types of fares and charges a two-part tariff for each type. a) What xed fee and per unit price will they choose for Enthusiastic fans? For Unethusiastic fans? 1)} What is the consumer surplus for each type of mnsmner? e) What are the prots for the Chiefs from each type of consumer? 2. Suppose instead that the Chiefs can't distinguish between two types of fans. Instead of setting a single constant prise per game, the Chiefs engagcs in menu pricing. a) What are the optimal ticket pad-tags (menu pricing] set by the Chiefs? 1:) What is the consumer surplus of reach type of consumer? c) What are the prots for the Chiefs from each type of mnsumer
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