Question
EconAdventures Park haslocal and visiting customers. The demand curve forlocalcustomers is QL=2500-10PL, and the demand forvisiting customers is QV=1500-5PV, where Q is thequantity ofadmission tickets
EconAdventures Park haslocal and visiting customers. The demand curve forlocalcustomers is QL=2500-10PL, and the demand forvisiting customers is QV=1500-5PV, where Q is thequantity ofadmission tickets demanded. The marginal cost ofserving a customer is constant at $150.
a. What are the price and quantity sold ofadmission tickets if Econ Adventures chargesbothcustomersthe same price foradmission?
b. What profit wouldEcon Adventures earn ifthey charged allcustomers the same price?
c. What are the price and quantity sold ofadmissions in thelocal market if Econ Adventures segments themarket foradmission tickets and charges different prices forlocals and visitors?
d. What are the total profits forEcon Adventures if the markets are segmented?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
