*7.2 Sea Breeze Boat Company has a monopoly in renting sailboats at a lake. During fall, its...
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*7.2 Sea Breeze Boat Company has a monopoly in renting sailboats at a lake. During fall, its hourly inverse demand function is p = 90 - 2q. During summer, the inverse demand function is p = 90 - q. Sea Breeze has a total of 30 boats available for rental on a monthly basis. Its marginal cost for renting is $10.
a. Which season is the peak season? Why?
b. What are the profit-maximizing prices in both seasons?
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Managerial Economics And Strategy
ISBN: 9780135640944
2nd Global Edition
Authors: Jeffrey M. Perloff, James A. Brander
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