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An water park faces a demand curve for park rides given by Q = 11 - 0.5P, where P is the price per ride and
An water park faces a demand curve for park rides given by Q = 11 - 0.5P, where P is the price per ride and Q is the number of rides. The marginal cost is $4.
If the amusement park uses a two-part tariff,
What would the producer surplus be? What would the consumer surplus would be?
Please show a graph with your answers
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