Question: Suppose the demand function of student moviegoers is the same as Worked-Out Problem 18.2, but the demand function of other adults is instead QdA =

Suppose the demand function of student moviegoers is the same as Worked-Out Problem 18.2, but the demand function of other adults is instead
QdA = 1,800 - 100P.
Marginal cost is still $2 per ticket. What prices will the monopolist set when she can discriminate and when she cannot? How will discrimination affect her profit?

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When she can discriminate the monopolist will set prices of P student 900 per ticket P adult 1000 per ticket Profit 11300 When she cannot discriminate the monopolist will set prices of P everyone 950 ... View full answer

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