Not use ai please 19. Price-discriminating monopolistAndrew owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on his property, making a large crater. The eventattracts scientists and tourists, and Andrew decides to sell nontransferable admission tickets to the meteor crater to both types of visitors: scientists(Market A) and tourists (Market B). The following graphs show daily demand (D) curves and marginal revenue (MR) curves for the two markets.Andrew's marginal cost of providing admission tickets is zero.PRICE (Dollars per ticket)201816141210842Market A?PRICE (Dollars per ticket)2018161412108NO 0 0 4 2DA0MR0+ +012 3 4 5 6 7 810QUANTITY (Admission tickets)Market BMRBDB0 1 2 3 4 5 6 7 8QUANTITY (Admission tickets)910?Suppose now that Andrew decides to charge a different price in each market. To maximize revenue, Andrew should charge $Market A and $per admission in Market B. At these prices, he will sell a total quantity ofadmission tickets per day.Complete the following table by calculating Andrew's total revenue from selling in a market under the discriminatory price policy.per admission in

The monopolist maximizes revenue by producing where marginal revenue (MR) equals marginal cost (MC).…

Answered: 19. Price-discriminating monopolist…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter13: Between Competition And Monopoly

Section: Chapter Questions

Problem 5DQ

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