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Consider the following scenario to answer the questions that follow. the varsity, located in downtown atlanta, is the world’s largest drive-in restaurant. located near the georgia tech campus, the drive-in attracts two distinct types of customers: college students and visitors to atlanta. the owners are considering offering a student discount of $1 off their combo meal, which is regularly priced at $9. there are 5,000 students interested in purchasing a combo meal, with a maximum willingness to pay of $8. there are 5,000 visiting customers interested in purchasing the combo meal, with a maximum willingness to pay of $9. assume that each customer, at most, will purchase a single meal and the marginal cost is $5. if the varsity decides to practice price discrimination, what will be its total revenue if it charges most customers $9 for a standard combo meal but charges a reduced price of $8 for only those customers who show their student identification card? a. $75,000 b. $80,000 c. $85,000 d. $95,000 e. $90,000
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