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{"ops":[{"insert":"Following information shows that a firm offering a good at different prices"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"to groups of consumers with different levels of willingness to pay."},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"Inverse Demand for movies: P1 = 20 \u2013 4Q1"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"Inverse Demand for students: P2 = 10 \u2013 Q2"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"MC = 4Q LKR \/ticket"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"(a) What price and quantity and maximizes profits if the firm charges each"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"market?"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"(b) Demonstrate that charging different prices for the two groups results in"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"higher profits than charging the same price for everyone."},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"(c) Graph the demand curves, the marginal revenue curves, the marginal cost"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"curve and highlight the equilibrium."},{"insert":"\n"}]}

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