Quantity |
Market Demand Price |
Total Costs |
Marginal Cost |
Average Total Cost |
0 |
100.00 |
800 |
||
10 |
95.00 |
1,500 |
82.50 |
150.00 |
20 |
90.00 |
2,450 |
65.00 |
122.50 |
30 |
85.00 |
2,800 |
42.50 |
93.33 |
40 |
80.00 |
3,300 |
32.50 |
82.50 |
50 |
75.00 |
3,450 |
20.50 |
69.00 |
60 |
70.00 |
3,710 |
18.50 |
61.83 |
70 |
65.00 |
3,820 |
9.50 |
54.57 |
80 |
60.00 |
3,900 |
9.00 |
48.75 |
90 |
55.00 |
4,000 |
10.00 |
44.44 |
100 |
50.00 |
4,100 |
12.50 |
41.00 |
110 |
45.00 |
4,250 |
17.50 |
38.64 |
120 |
40.00 |
4,450 |
20.00 |
37.08 |
130 |
35.00 |
4,650 |
25.00 |
35.77 |
140 |
30.00 |
4,950 |
30.00 |
35.36 |
150 |
25.00 |
5,250 |
35.00 |
35.00 |
160 |
20.00 |
5,650 |
45.00 |
35.31 |
170 |
15.00 |
6,150 |
60.00 |
36.18 |
180 |
10.00 |
6,850 |
75.00 |
38.06 |
190 |
5.00 |
7,650 |
100.00 |
40.26 |
200 |
0.00 |
8,850 |
44.25 |
Question: For the monopolist shown above, what is the best price and quantity from among the following:
Hint: Maximize economic profits.
Price Discrimination in the Movie Theatre Market |
|||||||||||
Price per ticket |
Quantity adult movie tickets |
Quantity senior movie tickets |
Total Demand for Tickets |
Single Price Total Revenue |
Single Price Marginal Revenue |
Adult Total Revenue |
Adult Price Marginal Revenue |
Senior Total Revenue |
Senior Price Marginal Revenue |
Marginal Cost |
Single Price Economic Profits |
12.00 |
200 |
0 |
200 |
2,400 |
2,400 |
0 |
1.00 |
2,200 |
|||
11.50 |
225 |
25 |
250 |
2,875 |
9.00 |
2,588 |
7.00 |
288 |
11.00 |
1.00 |
2,625 |
11.00 |
250 |
50 |
300 |
3,300 |
8.00 |
2,750 |
6.00 |
550 |
10.00 |
1.00 |
3,000 |
10.50 |
275 |
75 |
350 |
3,675 |
7.00 |
2,888 |
5.00 |
788 |
9.00 |
1.00 |
3,325 |
10.00 |
300 |
100 |
400 |
4,000 |
6.00 |
3,000 |
4.00 |
1,000 |
8.00 |
1.00 |
3,600 |
9.50 |
325 |
125 |
450 |
4,275 |
5.00 |
3,088 |
3.00 |
1,188 |
7.00 |
1.00 |
3,825 |
9.00 |
350 |
150 |
500 |
4,500 |
4.00 |
3,150 |
2.00 |
1,350 |
6.00 |
1.00 |
4,000 |
8.50 |
375 |
175 |
550 |
4,675 |
3.00 |
3,188 |
1.00 |
1,488 |
5.00 |
1.00 |
4,125 |
8.00 |
400 |
200 |
600 |
4,800 |
2.00 |
3,200 |
0.00 |
1,600 |
4.00 |
1.00 |
4,200 |
7.50 |
425 |
225 |
650 |
4,875 |
1.00 |
3,188 |
-1.00 |
1,688 |
3.00 |
1.00 |
4,225 |
7.00 |
450 |
250 |
700 |
4,900 |
0.00 |
3,150 |
-2.00 |
1,750 |
2.00 |
1.00 |
4,200 |
6.50 |
475 |
275 |
750 |
4,875 |
-1.00 |
3,088 |
-3.00 |
1,788 |
1.00 |
1.00 |
4,125 |
6.00 |
500 |
300 |
800 |
4,800 |
-2.00 |
3,000 |
-4.00 |
1,800 |
0.00 |
1.00 |
4,000 |
5.50 |
525 |
325 |
850 |
4,675 |
-3.00 |
2,888 |
-5.00 |
1,788 |
-1.00 |
1.00 |
3,825 |
5.00 |
550 |
350 |
900 |
4,500 |
-4.00 |
2,750 |
-6.00 |
1,750 |
-2.00 |
1.00 |
3,600 |
4.50 |
575 |
375 |
950 |
4,275 |
-5.00 |
2,588 |
-7.00 |
1,688 |
-3.00 |
1.00 |
3,325 |
4.00 |
600 |
400 |
1,000 |
4,000 |
-6.00 |
2,400 |
-8.00 |
1,600 |
-4.00 |
1.00 |
3,000 |
3.50 |
625 |
425 |
1,050 |
3,675 |
-7.00 |
2,188 |
-9.00 |
1,488 |
-5.00 |
1.00 |
2,625 |
3.00 |
650 |
450 |
1,100 |
3,300 |
-8.00 |
1,950 |
-10.00 |
1,350 |
-6.00 |
1.00 |
2,200 |
2.50 |
675 |
475 |
1,150 |
2,875 |
-9.00 |
1,688 |
-11.00 |
1,188 |
-7.00 |
1.00 |
1,725 |
2.00 |
700 |
500 |
1,200 |
2,400 |
1,400 |
1,000 |
1.00 |
1,200 |
|||
Question: Can the movie theater monopolist make higher economic profits by charging different prices for adults and seniors?
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