A night-club owner has both student and adult customers. The demand for drinks by a typical...
A night-club owner has both student and adult customers. The demand for drinks by a typical student is QS = 18 − 3P.The demand for drinks by a typical adult is QA = 10 − 2P. There are equal numbers of students and adults. The marginal cost of each drink is $2.
a. What price will the club owner set if it is not possible to discriminate between the two groups? What will the total profit be at this price?
b. If the club owner could separate the groups and practice third-degree price discrimination, what price per drink would be charged to members of each group? What would be the club owner’s profit in this case?
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A night-club owner has both student and adult customers. The
demand for drinks by a typical...
buestion 3 A night club owner has both student and adult customers. The demand for drinks...
buestion 3 A night club owner has both student and adult customers. The demand for drinks by a typical student is Q. 18-3P. The demand for drinks by a typical adult is QA-10-2P. There are an equal number of adults and students. The marginal cost of each drink is $2. 6 18 Q 10 Part 1: a) What price will the club owner set if she cannot discriminate between the two groups? What will total profit be at this price?...
1. A Nightclub owner has both student and adult customers. The demand for a typical student...
1. A Nightclub owner has both student and adult customers. The demand for a typical student is Is-18-3P. The demand for drinks by a typical adult is QA 10-2P. The marginal cost of a drink is $2 and fixed and sunk costs are zero a. If the nightclub owner can separate the 2 groups and practice 3rd degree price discrimination, what price does she charge to each group? What is her profit if she serve: l student and 1 adult?...
Only Q3 Thank you 1. An online retail store has both students and adult customers. Suppose that the demand for e-book...
Only Q3 Thank you
1. An online retail store has both students and adult customers. Suppose that the demand for e-books by a typical adult is 24 = 30-3P. The demand for a typical student is 9. - 15 -2P. There are equal numbers of students and adults. The marginal cost of each e-book is $1. a. What price will the retail store choose if it cannot discriminate between the two groups? What will total profit be at this price?...
A nightclub manager realizes that demand for drinks is more elastic among students, and is trying...
A nightclub manager realizes that demand for drinks is more elastic among students, and is trying to determine the optimal pricing schedule. Specifically, he estimates the following average demands: • Under25:qr =18−5p• Over25:q=10−2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the nightclub $2 each. (e) Suppose that the nightclub again restricts itself to linear pricing. While it is impossible to explicitly “age discriminate,” the manager notices that everyone remaining after midnight...
D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...
D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer is non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is truef the monopolist practices third degree price discrimination? The price charged to student equals 35 and non-students equals 60 The price charged to...
A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under...
A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under 65 and senior citizens. The monopolist's marginal oost is MC = 0.05q, where q is the total output in both markets. The marginal cost does not depend on the market in which the goods are sold. The demand curves are Adults: PA-25-1/6 x QA-25-0.1667 x QA Seniors: PS = 15-⅛xQs-15-0.125 x Qs ● . A. What is the total industry demand curve? (Rewrite each...
please answer (e) only A nightclub manager realises that demand for drinks is more elastic among...
please answer (e) only A nightclub manager realises that demand for drinks is more elastic among students and is trying to determine the optimal pricing schedule. Specifically, he estimates the following average demands: Under 25s q=18-5p Over 25s q=10-2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the nightclub $2 each. a)If the market cannot be segmented, what is the uniform monopoly price? b) If the nightclub can charge according to whether...
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p ....
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p . The other has demand function D2(p)=20-2p. The only firm in this market has constant marginal cost of 2. (1) Draw the two demand curves in a graph, with price on the vertical axis and demand on the horizontal axis. (2) (3rd-degree price discrimination) If the monopoly can identify the two consumers and charge different prices to them, what is the optimal price charged to...
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p ....
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p . The other has demand function D2(p)=20-2p. The only firm in this market has constant marginal cost of 2. (1) Draw the two demand curves in a graph, with price on the vertical axis and demand on the horizontal axis. (2) (3rd-degree price discrimination) If the monopoly can identify the two consumers and charge different prices to them, what is the optimal price charged to...
Two-Part Pricing Problem You can get a maximum of two-percentage points added to your test average...
Two-Part Pricing Problem You can get a maximum of two-percentage points added to your test average without using calculus. Use your knowledge about price-searching firms and two-part pricing to advise the company below. The company has a bar and is trying to decide on the cover charge (if any) and price for each drink. It has done a modest survey to ask customers to classify themselves as light drinkers or heavy drinkers and to indicate the number of drinks they...
buestion 3 A night club owner has both student and adult customers. The demand for drinks by a typical student is Q. 18-3P. The demand for drinks by a typical adult is QA-10-2P. There are an equal number of adults and students. The marginal cost of each drink is $2. 6 18 Q 10 Part 1: a) What price will the club owner set if she cannot discriminate between the two groups? What will total profit be at this price?...
1. A Nightclub owner has both student and adult customers. The demand for a typical student is Is-18-3P. The demand for drinks by a typical adult is QA 10-2P. The marginal cost of a drink is $2 and fixed and sunk costs are zero a. If the nightclub owner can separate the 2 groups and practice 3rd degree price discrimination, what price does she charge to each group? What is her profit if she serve: l student and 1 adult?...
Only Q3 Thank you
1. An online retail store has both students and adult customers. Suppose that the demand for e-books by a typical adult is 24 = 30-3P. The demand for a typical student is 9. - 15 -2P. There are equal numbers of students and adults. The marginal cost of each e-book is $1. a. What price will the retail store choose if it cannot discriminate between the two groups? What will total profit be at this price?...
D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer is non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is truef the monopolist practices third degree price discrimination? The price charged to student equals 35 and non-students equals 60 The price charged to...
A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under 65 and senior citizens. The monopolist's marginal oost is MC = 0.05q, where q is the total output in both markets. The marginal cost does not depend on the market in which the goods are sold. The demand curves are Adults: PA-25-1/6 x QA-25-0.1667 x QA Seniors: PS = 15-⅛xQs-15-0.125 x Qs ● . A. What is the total industry demand curve? (Rewrite each...
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