Given the information in the table, if a movie theater does not price discriminate, then it charges either the highest price the college students are willing to pay or the one that the senior citizens are willing to pay. The theater would practice price discrimination by charging college students $16 and senior citizens $8. Assume the firm incurs no fixed costs and the marginal cost of production is zero. How does total surplus change if the movie theater goes from charging a single price to perfectly price discriminating? Profit from 15 College Profit from 10 Senior Total Students $120 $240 $240 Citizens Profit $200 Uniform, $8 Uniform, $16 Price Discrimination $80 $80 $320 The change in total surplus from practicing perfect price discrimination instead of charging a single price is s (Enter your response rounded to the nearest whole number)

Given the information in the table, if a movie theater does not price discriminate, then it charges either the highest price the college students are willing to pay or the one that the senior citizens are willing to pay. The theater would practice price discrimination by charging college students $16 and senior citizens $8. Assume the firm incurs no fixed costs and the marginal cost of production is zero. How does total surplus change if the movie theater goes from charging a single price to perfectly price discriminating? Profit from 15 College Profit from 10 Senior Total Students $120 $240 $240 Citizens Profit $200 Uniform, $8 Uniform, $16 Price Discrimination $80 $80 $320 The change in total surplus from practicing perfect price discrimination instead of charging a single price is s (Enter your response rounded to the nearest whole number)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 3E

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