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 the same price in thetwo markets combined
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quanitity(i.e. 10, 27, 4)
Price
Quantity
Total
Revenue
Marginal
Revenue
Marginal
Cost
Total
Cost
MR-MC
Profit
14
8
112
5
40
72
11
143
10.33
5
55
5.33
88
12
168
8.33
5
70
3.33
98
11
17
187
6.33
5
85
1.33
20
200
4.33
5
100
-0.67
100
9
207
2.33
5
115
-2.67
92
8
26
208
0.33
5
130
-4.67
29
203
-1.67
5
145
-6.67
58
6
192
-3.67
5
160
-8.67
5
35
175
-7.67
5
190
-12.67
-38
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Applied Statistics In Business And Economics
Authors: David Doane, Lori Seward
4th Edition
9780073521480
