1.  We did this one in class.
2.  The three conditions are: market power; segment the market; and prevent resale.  Whether price discrimination is good or bad depends on how you view the tradeoff between efficiency and equity.  From an efficiency point of view, price discrimination can actually encourage the monopolist to produce more output (up to the competitive level), thereby reducing deadweight loss.  From an equity point of view, price discrimination allows the monopolist to capture any remaining consumer surplus.
3.  We did this one in class.
4.  And the higher price goes to...
a)  those who do not own a boat.
b)  adults.
c)  business travelers
d)  rich
5.  We did this one in class.
6.  Could a monopoly actually be a good thing from society's point-of-view in this case?
7.  We did this one in class.
8.  This one's for y'all to think over.
9.  Monopolist.
a)  TR = 20*100 = $2000; TC = 12*100 = $1200; profit = $800
b)  Since the lump sum tax is a fixed cost, it does not affect the marginal values.  Thus the monopolist will not alter its price or output.  Its profit falls to $500.
10.  This one's for y'all to think over.
11.  No problem.
12.  We did this one in class.
13.  The marginal revenue equation can be found as: MR = P - Q*(slope of demand curve).  Since a profit maximizing monopolist produces where MR = MC, we can substitute MC into the above equation to get:  MC = P - Q*(slope of demand).  Plugging in the values we are given yields:  3 = P - 30*0.10   or P = $6.
14.  MR for business travelers is: MR = 300 - 120*2.0 = $60.  Since this is less than MC = $100, the airline should raise the price to business travelers and cut back on how many customers they serve.  The MR for tourists is: MR = 300 -80*1.0 = $220.  Since this is greater than MC = $100, the airline should lower price and try to sell more tickets to tourists.
15.  We did this one in class.
16. We did this one in class.
17. We did this one in class.
18.  Let's see if we talk about this one on Monday.
19. Let's see if we talk about this one on Monday.
20.  We did this one in class.
21. Let's see if we talk about this one on Monday.
22.  You can do this one.
23.  You can do this one.
24. Let's see if we talk about this one on Monday.