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is able to identify the type (high-end or regular) of every potential passenger in the market. Then, the cruise line ca choose which category of

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is able to identify the type (high-end or regular) of every potential passenger in the market. Then, the cruise line ca choose which category of cabin to offer to each passenge and at what price. Which category of cabin would Gullive offer to regular passengers, and what price would it charg for that cabin? What about the high-end passengers? Mor realistically, Gulliver's cannot tell one type of passenger apart from the other in advance. It just sets the prices of class and economy cabins, and lets each customer decide which category to buy. (b) First, suppose that Gulliver's decides to offer only economy cabins, charging Pe per passenger. What value of Pe would maximize profits? (e) Next, suppose that Gulliver's offers only first-class cabin its cruises and charges PF per passenger. What value of P would maximize profits? (d) Finally, suppose that Gullive

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