A movie monopolist sells to college students and other adults,as in Worked-Out Problem 18.2 (page 635). The demand function forstudents is
QdS=1,000?100P,
and the demand function for other adults is
QdA=4,500?100P.
Marginal cost is $2 per ticket.
Instructions: Round your answers to 2 decimalplaces.
a. What prices will the monopolist set when she can discriminate?How will discrimination affect the monopolist's profit?
Pstudent = $ perticket.
Padult = $ perticket.
Profit = $.
b. What prices will the monopolist set when she cannotdiscriminate? How will it affect her profit?
Peveryone = $ perticket.
Profit = $.
