Suppose there are three types of consumers who attend concerts at your university's performing arts center: students, st

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Suppose There Are Three Types Of Consumers Who Attend Concerts At Your University S Performing Arts Center Students St 1 (31.52 KiB) Viewed 20 times

Suppose there are three types of consumers who attend concerts at your university's performing arts center: students, staff, and faculty. Each of these groups has a different willingness to pay for tickets, within each group, willingness to pay is identical. There is a fixed cost of $1,000 to attend the concert, but there are essentially no variable costs. For each concert: • 140 students are each willing to pay $20. . 200 staff members are each willing to pay $35. . 100 faculty members are each willing to pay $50. a. If the performing arts center can charge only one price, what price should it charge? $ b. What are profits at this price? $ 9,500 c. If the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? 12,3001 d. If the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?