Hannah Gadsby is doing a one-night only show in Toronto at Massey Hall. Only 278 seats (identical on all dimensions) are available. There are two types of ticket buyers--those who love Hannah Gadsby (57 people) and those who are only looking for a fun thing to do on a Friday night (500 people). Every consumer buys only one ticket. Hannah Gadsby fans are willing to pay $351 for a ticket and they really want to be at the show. The other buyers are willing to pay $243 for a ticket. Massey Hall does not allow ticket resale. All (and only) Hannah Gadsby fans are on a mailing list. Massey Hall emails them with the opportunity to buy a ticket before tickets go on general sale. If Massey halls price discriminates, what is the highest revenue it can make from the show? Enter a number only, no $ sign, no commas.
Hannah Gadsby is doing a one-night only show in Toronto at Massey Hall. Only 278 seats (identical on all dimensions) are available. There are two types of ticket buyers--those who love Hannah Gadsby (57 people) and those who are only looking for a fun thing to do on a Friday night (500 people). Every consumer buys only one ticket. Hannah Gadsby fans are willing to pay $351 for a ticket and they really want to be at the show. The other buyers are willing to pay $243 for a ticket. Massey Hall does not allow ticket resale. All (and only) Hannah Gadsby fans are on a mailing list. Massey Hall emails them with the opportunity to buy a ticket before tickets go on general sale. If Massey halls price discriminates, what is the highest revenue it can make from the show? Enter a number only, no $ sign, no commas.
Chapter9: Monopoly
Section: Chapter Questions
Problem 7SQP
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4.
Transcribed Image Text:Hannah Gadsby is doing a one-night only
show in Toronto at Massey Hall. Only 278
seats (identical on all dimensions) are
available. There are two types of ticket
buyers--those who love Hannah Gadsby (57
people) and those who are only looking for a
fun thing to do on a Friday night (500
people). Every consumer buys only one
ticket. Hannah Gadsby fans are willing to pay
$351 for a ticket and they really want to be at
the show. The other buyers are willing to pay
$243 for a ticket. Massey Hall does not allow
ticket resale.
All (and only) Hannah Gadsby fans are on a
mailing list. Massey Hall emails them with the
opportunity to buy a ticket before tickets go
on general sale. If Massey halls price
discriminates, what is the highest revenue it
can make from the show? Enter a number
only, no $ sign, no commas.
Transcribed Image Text:A monopolist is selling sneakers to students
and non-students. The Marginal Cost of an
extra pair of sneakers is $6. Student demand
is given by Q=132-P and Non-student
demand is given by Q=400-2P. Right now
they act like a single-price monopolist for the
entire market.
If they decide to do group price-
discrimination (assume they can) what will be
the CHANGE in prices for students? Don't
forget to include the negative sign if the price
for student falls with group price-
discrimination.
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