Between Ottawa and Toronto Island, Porter Air has a monopoly in two markets, one for students who are willing to fly on a standby basis, and one for business people who are not. The marginal cost of a seat on a plane that is not filled to capacity is zero. The demand function of all students combined is Q_S= 500 - 25P_Sand the demand function of all non- students combined is Q_N= 4000 - 10P_N. If the airline can engage in ordinary price discrimination and its planes are not filled to capacity, find:
a)The price to students.
b)The price to non- students.
c)The deadweight loss in the market.
d)Suppose price discrimination between students and non- students is illegal. What is the deadweight loss in the market?

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The Answer of Between Ottawa and Toronto Island, Porter Air has a monopoly in two markets, one for students who are willing to fly on a standby basis, and one for business people who are not. The marginal cost of a seat on a plane that is not filled to capacity is zero. The demand function of all students combined is Q_S= 500 - 25P_Sand the demand function of all non- students combined is Q_N= 4000 - 10P_N. If the airline can engage in ordinary price discrimination and its planes are not filled to capacity, find: a)The price to students. b)The price to non- students. c)The deadweight loss in the market. d)Suppose price discrimination between students and non- students is illegal. What is the deadweight loss in the market?

Between Ottawa and Toronto Island, Porter Air Has a Monopoly