is, the inverse demand function is P= 20 – 0.001Q, on weekdays, it is P=12 – 0.002Q. You acquire sto show their films at a cost of $25,000 per movie, plus a $3.00 "royalty" for each moviegoer ente moviegoer in your market watches a movie only once). trategy should you consider in this case? price discrimination price discrimination ee price discrimination u charge on weekends? ur response rounded to two decimal places. u charge on weekdays? ur response rounded to two decimal places.

The quantity sold by a monopolist using first degree price discrimination is higher than the quantity sold by a monopolist who cannot price discriminate. O True O False

Problem 3 uppose an airline has monopoly over a certain route. The estimated price elasticity of demand for business travelers is E-12, while the price elasticity of demand for leisure travelers is Ey-24. The airline wants to set the prices separately for business and vacation travelers. Economy Firat Class Only i the marginal cost of transporting each passenger is the same, und the airline is able to separate the two groups perfoctly, what is the optimal surcharge (in ) on business travelers? Oor example. fleiture travelers pay 100, and business ravelers pay 200, then the surcharge is 100%) Anvwer b) Suppose that in order to separste business travelen, the airline must offer them slightly better conditions on board (for enample, serve them a meal). As a resul, the marginal cost of flying a basiness traveler is 30% higher than for a leivare traveler. What is the optimal surcharge (in ) on business fravelers in this case? Awwer Now suppose the airline introdaces a Basi Economy fare,…

Question 30 Demand: P=120-Q Marginal Revenue: MR=120-2Q Total Cost: TC=Q² Marginal Cost: MC=2Q For this monopolist, the profit-maximizing price is and the profit-maximizing quantity is 90, 30 30, 90 40, 80 None of these answers O O O

Why won't  perfectly competitve charge a price lower than the equilibrium price?

If a monopolist can practice perfect price discrimination: D O profits will increase. producer surplus decreases. consumer surplus increases.