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The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q,
The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows: Family PF = $40 - $0.0004QF MRF = MTRF/MQF = $40 - $0.0008QF Senior Citizens Ps = $30 - $0.00025Qs MRs = $30 - $0.0005Qs Average variable costs for labour and materials are constant at $20 per unit
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