Problem
A concert organizer is preparing for the arrival of the Grateful Living band in his small town. He knows he has two types of concert goers: one group of 40 people, each willing to spend $60 on the concert, and another group of 70 people, each willing to spend $40. His total costs are purely fixed at $3,500.
(a) Draw the market demand curve faced by this monopolist.
(b) Draw the MR and MC curves.
(c) With two-price discrimination what will be the monopolist's profit?
(d) If he must charge a single price for all tickets can he make a profit?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.