Solution-Demand curves for different groups of customers

Demand curves for different groups of customers

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Reference no: EM131423695

Suppose that Kerasotes Crown Village Theaters Cinema is a local monopoly. It estimated the following demand curves for different groups of customers:

Adults --> P=12-2Q

Children --> P=8-3Q

Students ---> P= 10-4Q

The marginal cost of the cinema is $2 per customer.

(a) What is the marginal revenue in each submarket?

(b) What price should the cinema charge in each of the submarkets if its goal is to maximize profits?

Reference no: EM131423695

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Demand curves for different groups of customers

Reference no: EM131423695

Reference no: EM131423695

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