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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