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An amusement park, whose customer set is made of two markets, adults and children, has develop demand schedules as follows: The marginal operating cost of
An amusement park, whose customer set is made of two markets, adults and children, has develop demand schedules as follows:
The marginal operating cost of each unit of quantity is $5 (since marginal cost is a constant, so is average variable cost. Ignore fixed cost). The owners of the amusement park wish to maximize profits. Calculate the price, quantity and profit if: a. The amusement park charges a different price in each market. b. The amusement park charges the same price in the two markets combined.
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