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

and the demand function for other adults is

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 = $ per ticket.

Profit = $.

b. What prices will the monopolist set when cannot discriminate? How will it affect her profit?

Peveryone = $ per ticket.

Profit = $.

 

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