Suppose that at first, Teresa charges the same price of $8 per admission in both markets so that the total number of admissions demanded istickets.Suppose now that Teresa decides to charge a different price in each market. To maximize revenue, Teresa should chargeper admission inMarket A and $per admission in Market B. At these prices, she will sell a total quantity ofadmission tickets per day.AComplete the following table by calculating Teresa's total revenue from selling in both markets under the nondiscriminatory as well as thediscriminatory price policy.Total RevenuePricing Policy(Dollars)NondiscriminatoryDiscriminatoryTeresa charges a higher price in the market with a relativelyprice elasticity of demand. 7. A model of price discriminationTeresa owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on her property, making a large crater. The eventattracts scientists and tourists, and Teresa 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.Teresa's marginal cost of providing admission tickets is zero.bongoMarket AMarket B2020181816161414A12121010886.4422PBMRAMR,134579.101246.79.10QUANTITY (Admission tickets)QUANTITY (Admission tickets)PRICE (Dollars per ticket)PRICE (Dollars per ticket)

Suppose that at first, Teresa charges the same price of $8 per admission in both markets so that the total number of admissions demanded is ]tickets. | per admission in Suppose now that Teresa decides to charge a different price in each market. To maximize revenue, Teresa should charge[ Market A and S ] per admission in Market B. At these prices, she will sell a total quantity of | ] admission tickets per day. Complete the following table by calculating Teresa's total revenue from selling in both markets under the nondiscriminatory as well as the discriminatory price policy. Total Revenue Pricing Policy (Dollars) Nondiscriminatory Discriminatory Teresa charges a higher price in the market with a relatively price elasticity of demand.

Suppose that at first, Teresa charges the same price of $8 per admission in both markets so that the total number of admissions demanded is ]tickets. | per admission in Suppose now that Teresa decides to charge a different price in each market. To maximize revenue, Teresa should charge[ Market A and S ] per admission in Market B. At these prices, she will sell a total quantity of | ] admission tickets per day. Complete the following table by calculating Teresa's total revenue from selling in both markets under the nondiscriminatory as well as the discriminatory price policy. Total Revenue Pricing Policy (Dollars) Nondiscriminatory Discriminatory Teresa charges a higher price in the market with a relatively price elasticity of demand.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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