An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

Price ($)

Quantity

Adults

Children

5

15

20

6

14

18

7

13

16

8

12

14

9

11

12

10

10

10

11

9

8

12

8

6

13

7

4

14

6

2

The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Calculate the price, quantity, and profit if:

2. The amusement park charges a different price in each market.
4. The amusement park charges the same price in the two markets combined.
6. Explain the difference in the profit realized under the two situations.