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Unformatted text preview: Shanghai, China. The demand curve for regular coach tickets during the summer is P = 2600 -5Q, where P is the price of a ticket in dollars and Q is the number of tickets sold each day. The demand for tickets the rest of the year is P = 2000 - 5Q. The marginal cost of an additional passenger, regardless of the season, is $200. a. Graph the demand curve during the summer and for the rest of the year. b. Graph the marginal cost curve for both markets. c. Derive and graph the marginal revenue curve during the summer and for the rest of the year. Answer : The marginal revenue curves are MR = 2600 - 10 Q during the summer and MR = 2000- 10 Q during the rest of the year....
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08