Question

A monopolistic cinema sells tickets to both college students and other adults. The demand function for...

A monopolistic cinema sells tickets to both college students and other adults. The demand function for students is

Q(d) = 800-100P for students

and the demand function for other adults is:
Q(d)= 1600 -100P for adults.

The total cost function of the monopolist is:
C(Q) = Q+0.005*Q^2.

1. Compute the equilibrium levels of prices and quantities of tickets for the two categories of customers. Calculate its profit and the surplus of the two categories of customers.

2. Repeat computations in 1. when the demand for adults increases to Q(d)= 1800 -100P?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Promoters of a major college basketball tournament estimate that the demand for tickets on the part...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Qad = 5,000 – 10P, and that the demand for tickets on the part of students is given by Qst = 10,000 – 100P. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $0. a. For each...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Qad = 5,000 –10P, and that the demand for tickets on the part of students is given by Qst = 10,000 –100P. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $0. a.For each segment (adults and...
Let demand for tickets to the movies in Adelaide in summer months be represented by the...
Let demand for tickets to the movies in Adelaide in summer months be represented by the following demand schedule: price $ quantity demanded (per summer month) 20 0 18 100 16 200 14 300 12 400 10 500 8 600 6 700 4 800 2 900 Suppose that all movie theatres are owned by one company such that movie tickets are supplied by a monopolist, with a constant marginal cost of $4.    a) Calculate what number of movie tickets...
Oligopoly and Monopolistic Competition. Please show work. The local steel market has an inverse demand function...
Oligopoly and Monopolistic Competition. Please show work. The local steel market has an inverse demand function for a metric ton of steel: P = 1450 - Q Donald and Justin are the only two steel miners in the market who sell metric tons of steel. They both have a constant marginal and average cost of $100 per metric ton. Both farmers simultaneously determine the quantity of steel they ar going to bring to the market. They do not conger beforehand,...
1. J.Crew sells sweaters, pants, and other clothes to college students, among other groups. Many like...
1. J.Crew sells sweaters, pants, and other clothes to college students, among other groups. Many like its clothing, but the company has had financial problems in the past few years. In the belief that these problems stemmed from simple merchandising issues - styles, colors, price - J.Crew started to reposition itself in 2007. While some current and potential customers urged the company to lower prices and thereby expand its appeal, in fact prices were raised on many products. For example,...
Suppose a drug manufacturer sells a new drug for twitchy feet. The market demand curve for...
Suppose a drug manufacturer sells a new drug for twitchy feet. The market demand curve for the drug is P=120-4Q, where P is the market price and Q is the market quantity. Also suppose the marginal cost for manufacturing is 20/ unit. A) Assuming the firm is an unregulated monopolist, what quantity and price should the firm offer? Quantity = Price = B) Now suppose, the manufacturer has identified two separate classifications of customers for their twitchy feet product. Because...