=+15.2 Business Application: Disneyland Pricing Revisited: In end-of-chapter exercise 10.10, we investigated different ways that you can price the use of amusement park rides in a place like Disneyland.

We now return to this example. Assume throughout that consumers are never at a corner solution.

A. Suppose again that you own an amusement park and assume that you have the only such amusement park in the area; that is, suppose that you face no competition. You have calculated your cost curves for operating the park, and it turns out that your marginal cost curve is upward sloping throughout.

You have also estimated the downward-sloping (uncompensated) demand curve for your amusement park rides, and you have concluded that consumer tastes appear to be identical for all consumers and quasilinear in amusement park rides.