Alfred has plotted revenue and cost graphs for his pastry business. He’s testing a number of cost assumptions against his business’s revenue.

Which two statements correctly interpret the graphs?

1. Cost falls and revenue rises up to approximately $6 per pastry.
2. After approximately $6, both cost and revenue fall.
3. Costs continue to fall beyond approximately $6 because of an increase in revenue.
4. Revenue continues to rise regardless of the change in price.
5. Revenue falls and cost rises up to approximately $17.

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?