A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page 635). The demand function for students is Q = 1,400-50P, and the demand function for other adults is Q = 1,800 - 50P. Marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem). Instructions: Round your answers to 2 decimal places. a. What prices will the monopolist set when she can discriminate? How will discrimination affect her profit? Pstudent = $ per ticket. = $ Padult Profit = $ b. What prices will the monopolist set when cannot discriminate? How will it affect her profit? = $ per ticket. per ticket. Peveryone Profit = $

A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page 635). The demand function for students is Q = 1,400-50P, and the demand function for other adults is Q = 1,800 - 50P. Marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem). Instructions: Round your answers to 2 decimal places. a. What prices will the monopolist set when she can discriminate? How will discrimination affect her profit? Pstudent = $ per ticket. = $ Padult Profit = $ b. What prices will the monopolist set when cannot discriminate? How will it affect her profit? = $ per ticket. per ticket. Peveryone Profit = $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A movie monopolist sells to college students and other adults, as in Worked-Out Problem 18.2 (page 635). The demand function for
students is
Q = 1,400-50P,
and the demand function for other adults is
Q = 1,800 - 50P.
Marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem).
Instructions: Round your answers to 2 decimal places.
a. What prices will the monopolist set when she can discriminate? How will discrimination affect her profit?
Pstudent = $
per ticket.
= $
Padult
Profit = $
b. What prices will the monopolist set when cannot discriminate? How will it affect her profit?
= $
per ticket.
per ticket.
Peveryone
Profit = $

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