100%(1)1 out of 1 people found this document helpful
This preview shows page 1 - 2 out of 3 pages.
Professor James A. Hornsten Problem Set #8 Solutions ECON 202: Introduction to Microeconomics Pricing, Imperfect Competition & Antitrust Northwestern University Fall 2013 Due in class at 12:00PM, Monday, November 181. THIRD DEGREE PRICE DISCRIMINATION Suppose the total demand for movie tickets can be broken down into two segments. The adult segment is described by PA= 100 – QA, while the student segment is described by PS= 60 – ½QS. The constant marginal (and average total) cost of production is 20. The market is served by a monopoly. a. Find the profit if the monopoly does not distinguish the groups and just charges a uniform price of 50 to all customers. A. b. Find the profit if the monopoly does distinguish the groups and uses 3DPD. (It can prevent resale) .