2. inputs and outputs van's performance pizza is a small restaurant in chicago that sells gluten-free pizzas. van's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. van signed a lease obligating him to pay the rent for the four ovens for the next year. because of this, and because van's kitchen cannot fit more than four ovens, van cannot change the number of ovens he uses in his production of pizzas in the short run.

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?