Question

op DatPift: The Authorit. HS ! Buy Cannabis Seeds... ework Saved Help Save & Exit Submit Suppose there are three types of consumers who attend concerts at your university's performing arts center students, staff, and faculty. Each of these groups has a different willingness to pay for tickets, within each group, willingness to pay is dentical. There is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. For each concert . There are 140 students willing to pay $20. . There are 200 staff members willing to pay $35. . There are 100 faculty members willing to pay $50 1. If the performing arts center can charge only one price, what price should it charge?

Answer 1

140Students willingness to pay $ 20. 200 staff " " " $35 100 Jaculty o "" $50 @j if can change ony one price Then it should charge the minimum willingness to lay that is of 140 students willingness to pay So p= $20 (6) Profit = TR-TC = (140 + 200 + 100)20 - 1000 - (440)20 - 1000 - 8800-1000 = 67800 it it can Price discoiminate and charge Two faces one from Students and another from Staff | yaculty Then "Price Tsom students = $ 20 (sau calling mess To Pay) Price from Staff) Jacuity = $35 (mini. willingness to Pay of Both gooups) Profits - TR-TC - 140 (20)+ (300)(35) - 1000 - 2800+ 10500 - 1000 = 12300

(d, if it can charge three different fices then it should Charge each grouf with their willingne So Price for student group = $20. Price you stayy group = $35 Price Jos Jaculty group = $50 to fit= 20 (140) + Zoo (35) + 100 (50) - 1000 - 2800 + 7000 + 5000 - 1000 = 14800 - 1000 13 80o