5. Price-discriminating monopolist Edison owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on his property, making a large crater. The event attracts...

Extracted text: 5. Price-discriminating monopolist Edison owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on his property, making a large crater. The event attracts scientists and tourists, and Edison decides to sell nontransferable admission tickets to the meteor crater to both types of visitors: scientists (Market A) and tourists (Market B). The following graphs show daily demand (D) curves and marginal revenue (MR) curves for the two markets. Edison's marginal cost of providing admission tickets is zero. (? Market A Market B 20 20 18 18 16 16 14 14 Slope: -0.67 12 12 10 10 Slope: -0.67 8 8 4 4 2 2 MR, MRB PB( + 3 9 12 15 18 21 24 27 30 3 12 15 18 21 24 27 30 QUANTITY (Admission tickets) QUANTITY (Admission tickets) PRICE (Dollars per ticket) PRICE (Dolla per ticket)


Extracted text: Suppose that at first, Edison charges the same price of $8 per admission in both markets so that the total number of admissions demanded is tickets. Suppose now that Edison decides to charge a different price in each market. To maximize revenue, Edison should charge $ per admission in Market A and $ per admission in Market B. At these prices, he will sell a total quantity of admission tickets per day. Complete the following table by calculating Edison's total revenue from selling in both markets under the nondiscriminatory as well as the discriminatory price policy. Total Revenue Pricing Policy (Dollars) Nondiscriminatory Discriminatory Edison charges a higher price in the market with a relatively price elasticity of demand.