Question No. 4 A railway company offers travel services between two cities. There are two types of consumers: 100 studen

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Question No 4 A Railway Company Offers Travel Services Between Two Cities There Are Two Types Of Consumers 100 Studen 1 (60.81 KiB) Viewed 33 times

Question No. 4 A railway company offers travel services between two cities. There are two types of consumers: 100 students whose demand is given by 9, = 20 - Peach, and 100 other consumers whose demand is given by 92 = 40-2P each, The costs function of the h 0.52 0.92 492 (multiply by dent of a) railway company is TC = 10,000 + 60, where Q is the total number of journeys that the railway company provides. 2(40) - 40 x (25440) lon Y will pay) icipate) plug in lowest will pay) ) 22 a. Assume that the railway company can set a two-part tariff (TPT) and it can discriminate between students and other consumers. What will be the tariff that will be offered to each of the types of consumers? b. How would your answer to part a will change if railway company cannot discriminate in tariffs between students and other consumers? C. Answer parts a and b for the case where the company can not set a TPT and can only charge a price per unit? tota by 2 30-40 4/3 X 65