Problem Set 6_ Special Pricing.docx - 1) An amusement park,...

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1)An amusement park, whose customer set is made up of two markets, adult and children, hasdeveloped demand schedules as follows:Price ($)Quantity,AdultsTotalRevenueAdultsTotalCostAdultsProfitQuantity,ChildrenTotalRevenueChildTotalCostChildProfit51575750201001000614847014181089018713916526161128032812966036141127042911995544121086048101010050501010050501199945548884048128964056672304213791355645220321468430542281018The marginal operating cost of each unit of quantity is $5. (Hint: Because marginal costis a constant, so is average variable cost. Ignore fixed cost.) The owners of theamusement park want to maximize profits.a)Calculate the price, quantity, and profit for each segment if the amusement parkcharges a different price in each market. (Hint: calculate profit at each price in theadult market, then in the child market, and choose profit maximizing in each. Using aspreadsheet would make this task manageable.)

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Term
Summer
Professor
N/A
Tags
Economics, Harshad number

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