A movie monopolist sells to college students and other adults. The demand function for students is Q=880 - 100P, and the demand function for other adults is Q=2,000 - 100P. Costs is C(q) = 10 +0.00502m per ticket, where Q=Qs+ QA
A movie monopolist sells to college students and other adults. The demand function for students is Q=880 - 100P, and the demand function for other adults is Q=2,000 - 100P. Costs is C(q) = 10 +0.00502m per ticket, where Q=Qs+ QA
Chapter8: Monopoly
Section: Chapter Questions
Problem 15SQ
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The last answer appears to be incorrect, please help with this
Transcribed Image Text:A movie monopolist sells to college students and other adults. The demand function for students is
Q = 880 - 100P,
and the demand function for other adults is
Q = 2,000 - 100P.
Costs is
C(q) = 10 +0.00502m per ticket,
where Q=Qs+ QA-
Instructions: Round your answers to 2 decimal places.
a. What prices will the monopolist set when she can discriminate?
Pstudent = $
Oper ticket.
Padult = $
Profit = $
b. What if demand for adults increases to
Q = 2,200 - 100P?
Pstudent = $
Padult=
Profit = $
16 per ticket.
20
per ticket.
O decreases.
per ticket.
c. When adult demand increases, the adult price:
does not change.
increases.
d. When adult demand increases, the student price:
increases.
O does not change.
O decreases.
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