A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?

A. $4

B. $7

C. $6

D. $12


B. $7

Economics

You might also like to view...

The natural rate of unemployment is comprised of

A) frictional and cyclical unemployment. B) frictional and structural unemployment. C) cyclical and structural unemployment. D) frictional, cyclical, and structural unemployment.

Economics

The larger the MPS, the smaller the value of the multiplier

Indicate whether the statement is true or false

Economics

If at some output level for a firm price exceeds average total cost, then the firm is earning an economic profit

a. True b. False Indicate whether the statement is true or false

Economics

One can determine producers' surplus if the minimum selling price and the _____________ are known

A) price received B) price paid C) tax paid D) tax received E) a and c

Economics