Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The demand curve for tickets at an amusement park is: Q=D(p)=140046p Q=D(p)=1400-46p, p > 0 All customers pay the same ticket price. The marginal cost

The demand curve for tickets at an amusement park is:

Q=D(p)=140046p

Q=D(p)=1400-46p, p > 0

All customers pay the same ticket price. The marginal cost of serving a customer is $11.

Using calculus and formulas (don't just build a table in a spreadsheet as in the Marginal Analysis I lesson) to find a solution, how many tickets will be sold at the profit-maximizing price?

Round the equilibrium quantity DOWN to its integer part and round the equilibrium price to the nearest cent.

Hint:The first derivative of the total revenue function, which is cumulative, is the marginal revenue function, which is incremental. The formula summary explains how to compute the derivative.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics A Problem-Solving Approach

Authors: Luke M. Froeb, Brain T. Mccann

2nd Edition

B00BTM8FK0

More Books

Students also viewed these Economics questions