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Figure 10.5 Single-Price Monopolist at the Ironman 70.3 Cozumel Triathlon
A single-price monopolist faces the kinked demand curve D, equal to the horizontal sum of the demand curves for travelers and local participants. The race organizer will sell 1,300 entries at a price of $186.67, between the two prices ($170 and $220) charged when the market is segmented. The resulting producer surplus, rectangle A, is smaller than the producer surplus under market segmentation.