Find third degree price discrimination equilibrium

Assignment Help Business Economics

Reference no: EM133636528

Promoters of major league basketball tournament estimate the the demand for tickets on the part of adults is given by: QA = 5, 000 - 10P and that the demand for tickets on the part of students is given by: QS = 10, 000 - 100P

The promoters wish to segment the market and charge adults and students different prices. tthey estimate that the marginal and average cost of seating ad additional spectator is constant at $10.

1. Find the third degree price discrimination equilibrium.

2. Determine the profit generated by each segment and add them together to find the promoter's total profit.

3. How would your answer change if the arena where the event was to take place had only 5,000 seats?

Reference no: EM133636528

Questions Cloud

Economy was running trade surplus : An economy was running a trade surplus of $90 billion, and private investment was $190 billion.

Share your perspectives about the article : Share your perspectives about the article. Ensure you inform your perspective by reading other articles and commentaries on the issue.

Trade unions raise workers wages and represent workers : If trade unions raise workers' wages and represent workers' interests, why has trade union membership been in long-term decline in the United Kingdom?

Describe the mission vision values structure and culture : Describe the mission, vision, values, structure, and culture of the company. Each description should be 75 to 100 words.

Find third degree price discrimination equilibrium : Find the third degree price discrimination equilibrium. Determine the profit generated by each segment and add them together to find

Analyze the primary ways in which analysts may use a model : Analyze the primary ways in which analysts may use a model of the labor market to explain wage and employment figures for health care workers.

Evaluate team dynamics, and engage in open dialogue : Evaluate the team dynamics, and engage in open dialogue with the concerned brand partner. She must gather data-driven insights into the team's operational short

Equilibrium exchange rate between the dollar and peso : The equilibrium exchange rate between the dollar and peso is. Determined primarily by the demand of Argentines for US goods.

Create a code of conduct draft for that one application : Create a code of conduct draft for that one application generated by ChatGPT. Then, you will edit it to make it applicable to your chosen technology

User Account

All Pages