Operates as a price-discriminating monopolist

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Cinemax is the only movie theater in Dannyburg. As such, it operates as a price-discriminating monopolist. Two types of customers view movies there: adults (A) and high school students (S) . Their respective demand functions are: Qa = 6400 Pa-2 Qs = 30,000 Ps-4 a. (1) Without knowing marginal cost, what percent discount should the firm offer to students? b. (2) If the firm’s marginal cost per person is $4, what price should each type of ticket carry? How many of each type of ticket are sold (round to nearest ticket if necessary)?

Reference no: EM13886535

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Operates as a price-discriminating monopolist : Cinemax is the only movie theater in Dannyburg. As such, it operates as a price-discriminating monopolist. Two types of customers view movies there: adults (A) and high school students (S) . Their respective demand functions are: Qa = 6400 Pa-2 Qs = ..

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