*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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