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An amusement park has estimated the following demand equation for the average park guest Q = 16 - 2 P where Q represents the number
An amusement park has estimated the following demand equation
for the average park guest
Q = 16 - 2P
where Q represents the number or rides per guest, and P the price per ride.
The total cost of providing a ride is characterized by the equation
TC = 2 + 0.5Q
a. How much should the park charge on a per-ride basis to maximize its
profit? What is the amusement park's total profit per customer?
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