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Help Solve Sedgefield Resort offers vacation packages to direct resort book and travel search engine customers. Annual demand functions for single night bookings, Q, are

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Sedgefield Resort offers vacation packages to direct resort book and travel search engine customers. Annual demand functions for single night bookings, Q, are as follows: Direct Book PR = $50 - $0.0004QR Travel Search Engine Ps =$35 - $0.00075Qs Marginal costs per bookings are $20 per night. Because MC is constant, MC=AVC. A. It is easy for the company to segment the market and price discriminate between the Direct Resort Book and Travel Search Engine customers. Calculate the profit-maximizing price, output, and total profit contribution levels. B. What are the price elasticities for each group of customers calculated in part A? Are these elasticities consistent with what you would expect given your answers in part A? Explain

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