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Suppose Car World is an amusement park that has the following inverse demand for its rides:p(y) = 60 -6y The marginal cost of each ride
Suppose Car World is an amusement park that has the following inverse demand for its rides:p(y) = 60 -6y The marginal cost of each ride is $12 and there are no fixed costs.An economics student is advising the park and suggesting that it should charge an admission fee equal to the entire area below the demand curve which represents the consumer's willingness to pay. Is this the optimal pricing strategy? If so, what are the firm's profits? If not, what is the best pricing strategy?
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