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7. Price-discriminating monopolist Kevin, a retires, owns and lives in the desert on a piece of land that isn't worth much. One day, a giant meteorite falls in the middle of his property. As it turns out, two groups of people are interested in visiting the meteorite: scientists (Market A) and tourists (Market B). Kevin decides to sell tickets to visit the meteorite in both Market A and Market B. He stays home all day anyway, so collecting money from visitors isn't a problem for him. Therefore, you can assume he has zero costs. Also, Kevin has a very good memory and will allow only the person who bought each ticket to use it. Thus, you can assume that all tickets are nontransferable The demand and marginal revenue curves for the two markets are shown on the following two graphs. (?) (?) Market A Market B 10 10 PRICE IN MARKET A (Dollars per ticket) PRICE IN MARKET B (Dollars perticket) MR. MR 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 910 QUANTITY IN MARKET A (Tickets per hour) QUANTITY IN MARKET B (Tickets per hour) Assume Kevin has to charge the same ticket price in each of the two markets. If he sets a price of $4 per ticket, the total quantity demanded in both markets will be tickets per hour. Now, assume Kevin can price discriminate by charging a different price in each market. Because Kevin has no costs, he chooses prices for scientists and tourists that maximize his total revenue. In order to maximize revenue, Kevin should charge |S per ticket in Market A and per ticket in Market B. At these prices, he will sell a total of tickets per hour. Refer to your answers to the previous two questions. Assume Kevin decides that he wants to limit admission to 8 people per hour, but he still wants to generate the most revenue possible. If Kevin is forced to charge everyone the same price, he will earn revenues of |$ per hour. If he can price discriminate by charging a different price in each market, he can earn revenues of up to | per hour. Kevin charges a higher price in the market with price elasticity of demand.Refer to your answers to the previous two questions, Assume Kevin decides that he wants generate the most revenue possible. If Kevin is higher charge everyone the same price, price discriminate by charging a different price i arket, he can earn revenues of up lower Kevin charges a higher price in the market with price elasticity of demand