Question
An amusement park has estimated the following demand equation for the average park guest Q = 16 - 2P Where Q represents the number of
An amusement park has estimated the following demand equation for the average park guest Q = 16 - 2P
Where Q represents the number of riders and P the price per ride.
The total cost of providing rides to a guest is TC = 2 + 0.5Q
If a two-part tariff policy is used, what admission fee should the park charge to maximize its profit?
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Numerical Analysis
Authors: Richard L. Burden, J. Douglas Faires
9th edition
538733519, 978-1133169338, 1133169333, 978-0538733519
