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An amusement park has identified its demand functions as: Q =50 - 3P. The marginal operating cost of each unit of quantity is $5 and
An amusement park has identified its demand functions as: Q =50 - 3P. The marginal operating cost of each unit of quantity is $5 and there are no fixed costs. The park is a monopolist and exercises significant price making power in the market.On performing a more careful market analysis it is determined by the monopolist that its customer set is made up of two sub-markets, adults (A) and children (C). The demand functions for each of these sub-markets are identified as follows: OA = 20 - PA and Oc = 30 - 2Pc
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