Home / Questions / An amusement park, whose customer set is made up of two markets, adults and children, has
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
|
Price ($) |
Quantity |
|
|
Adults |
Children |
|
|
5 |
15 |
20 |
|
6 |
14 |
18 |
|
7 |
13 |
16 |
|
8 |
12 |
14 |
|
9 |
11 |
12 |
|
10 |
10 |
10 |
|
11 |
9 |
8 |
|
12 |
8 |
6 |
|
13 |
7 |
4 |
|
14 |
6 |
2 |
Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quanitity (i.e. 10, 27, 4)
|
Price |
Quantity |
Total Revenue |
Marginal Revenue |
Marginal Cost |
Total Cost |
MR-MC |
Profit |
|
14 |
8 |
112 |
5 |
40 |
72 |
||
|
|
11 |
143 |
10.33 |
5 |
55 |
5.33 |
88 |
|
12 |
|
168 |
8.33 |
5 |
70 |
3.33 |
98 |
|
11 |
17 |
187 |
6.33 |
5 |
85 |
1.33 |
|
|
|
20 |
200 |
4.33 |
5 |
100 |
-0.67 |
100 |
|
9 |
|
207 |
2.33 |
5 |
115 |
-2.67 |
92 |
|
8 |
26 |
208 |
0.33 |
5 |
130 |
-4.67 |
|
|
|
29 |
203 |
-1.67 |
5 |
145 |
-6.67 |
58 |
|
6 |
|
192 |
-3.67 |
5 |
160 |
-8.67 |
|
|
5 |
35 |
175 |
-7.67 |
5 |
190 |
-12.67 |
-38 |
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