Gayle is 42 years old, single, and does not plan to marry. she has taught school for 20 years and plans to retire in 12 more years. last year, gayle began to contribute to a teacher's retirement plan and to an individual retirement account (ira). she is in good health, and her hobbies include reading, embroidery, gardening, and bowling. she attends an aerobic dance class 3 times each week and has done so for years. gayle has a family history of diabetes, so she takes her health seriously. gayle is beginning to notice some age-related changes in her body, but she accepts them as normal. she has a good network of friends that she vacations with every year. she likes to travel and enjoys life.

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 put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?