Find the monopoly profit maximizing output

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Reference no: EM131377197

Suppose a school has monopoly on parking spaces on its grounds. The teachers' inverse demand for parking spaces is given by pt=150-2yt, where y represent parking spaces and the subscript T stands for teachers. Suppose students are also allowed to use the parking lots. However, their demand curve is different :since students have less money, there demand function is different . There inverse demand for parking space is given by ps=100-ys. the school's cost of providing y parking spaces is a combination of variable and fixed costs.The school must assume costs of$100 each semester and must pay $50 per space to keep the parking lot tidy . The monopoly can use third-degree price discrimination between teachers and student. Find the monopoly's profit maximizing output and price for teachers,(yT,pT), and for the students(ys,ps)

Reference no: EM131377197

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