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 a different price in the child's market
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 |
2 |
28 |
5 |
10 |
Blank 1 |
||
13 |
Blank 2 |
52 |
12 |
5 |
20 |
7 |
32 |
Blank 3 |
6 |
72 |
10 |
5 |
30 |
5 |
42 |
11 |
8 |
88 |
8 |
5 |
40 |
3 |
48 |
10 |
10 |
100 |
6 |
5 |
50 |
1 |
Blank 4 |
9 |
Blank 5 |
108 |
4 |
5 |
60 |
-1 |
48 |
Blank 6 |
14 |
112 |
2 |
5 |
70 |
-3 |
42 |
7 |
16 |
112 |
0 |
5 |
80 |
-5 |
Blank 7 |
6 |
Blank 8 |
108 |
-2 |
5 |
90 |
-7 |
18 |
Blank 9 |
20 |
100 |
-4 |
5 |
100 |
-9 |
0 |
An amusement park, whose customer set is made up of two markets, adults and children, has...
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