Question
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: The marginal operating cost
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost.Ignore fixed costs. The owners of the amusement part want to maximize profits.
Price ($)
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
Calculate the price, quantity, and profit if:The amusement park charges a different price in the adult market
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quantity(i.e. 10, 27, 4)
Price
Quantity
Total
Revenue
Marginal
Revenue
Marginal
Cost
Total
Cost
MR-MC
Profit
6
84
5
30
34
13
91
7
5
35
2
56
12
8
96
5
5
40
0
9
99
3
5
45
-2
54
10
100
1
5
50
-4
50
9
11
99
-1
5
55
-6
12
96
-3
5
60
-8
36
7
91
-5
5
65
-10
26
6
14
84
-7
5
70
-12
5
15
75
-9
5
75
-14
0
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Puzzle Of Latin American Economic Development
Authors: Patrice Franko
2nd Edition
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