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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

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 15CQ
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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.
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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