Q9

substitutable good C) Is a product that is sold at a price below its direct marginal cost to encourage sales of a complementary good D) Is a product that is sold at a price below its variable cost to encourage sales of a complementary good 9. A movie monopolist sells to students and adults. The demand function for students is Q's = 600 - 100 P and the demand function for adults is Q', = 1,200-100 P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits? A) 2500 QA609- 19011 B) 500 C) 200 = 4/00 D) 600 106 10. Firms engage in tacit collusion when A) They predict what the other will do and attempt to undercut them B) They collude without communicating, sustaining a price above the noncooperative price that pieraction