Ian is considering changing his electricity plan. with his current plan, he pays $0.95 per kilowatt (kw) of energy usage, regardless of whether the usage is during peak hours or off-peak hours. ian’s average monthly bill is about $125, due to the fact that he consumes an average of 131 kw per month. at least 50 kw are consumed during peak hours and at least 45 kw are used during off-peak hours each month. the new energy plan offers to change ian’s rates to $1.05 per kilowatt during peak hours and $0.79 per kilowatt during off-peak hours. ian decides to sign up. without completely changing his energy usage habits, what is the best way for ian to consume energy while minimizing his monthly bill on the new plan?

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?