a student - run latte stand at the center of campus serves two types of customers students and professors there  are 500  students and 30 professors at the college. each student's reservation price for a latte is $2 wach professor's reservation price for a latte is $5 each individual buys  one latte per day . the latte stand marginal cost of producing a latte is constant at $1 suppose  the latte stand can't prce-discriminate . if it chnages $2  per latte the consumer surpus will be per  and the producer surpus  will per day.  suppose now that the latte stand can price  discriminate if it changes students  who must show their student ids $2  and  professors $5  the consumer surpus will be  per day and  the producer surpulus will be per day A.0;530;90;530 b.0;0;0;620 c.90;0;0;90;530 d. 90;530;30;620

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 3E
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a student - run latte stand at the center of campus serves two types of customers students and professors there  are 500  students and 30 professors at the college. each student's reservation price for a latte is $2 wach professor's reservation price for a latte is $5 each individual buys  one latte per day . the latte stand marginal cost of producing a latte is constant at $1 suppose  the latte stand can't prce-discriminate . if it chnages $2  per latte the consumer surpus will be per  and the producer surpus  will per day.  suppose now that the latte stand can price  discriminate if it changes students  who must show their student ids $2  and  professors $5  the consumer surpus will be  per day and  the producer surpulus will be per day

A.0;530;90;530

b.0;0;0;620

c.90;0;0;90;530

d. 90;530;30;620

 

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