Suppose executives at an art museum know that 100 adults are willing to pay $12 for admission to the museum on a weekday. suppose the executives also know that 200 students are willing to pay $8 for admission on a weekday. the cost of operating the museum on a weekday is $2,000. how much profit will the museum earn if it engages in price discrimination?

If the museum engages in price discrimination and decides to take both "contracts" (adults and students), the profit the museum will earn is $800.

And it goes like this:

Adults: 100 x $12 = 1.200

Students: 200 x $8 = 1.600

Income: 1.200 + 1.600 = 2.800 total incomes if both contracts happens in the same day.

Profit: 2.800 (Income) - 2.000 (costs) = 800 profit

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