Microeconomics 2nd Edition by Douglas Bernheim

Exercise 10

(Calculus version below.) Consider a movie theater monopolist who faces the same demands from students and other adults as the monopolist in Worked-Out Problem 18.2 (page 635) but who has cost function C ( Q ) = Q + 0.005 Q 2 with marginal cost MC = 1 + 0.01 Q , where Q is the total number of tickets sold (equal to the sum of student tickets and other adult tickets). What is the monopolist's best price if discrimination is not possible What are her best prices if discrimination is possible What is the effect of discrimination on aggregate surplus On consumer surplus What would happen to the student price under price discrimination if the demand of other adults increases to Q d A = 1,800 100 P Why
Worked-Out Problem 18.2