Question

Happyland is the only theme park in the nation. The table sets out the demand schedule for theme park passes and the cost schedule for running the theme park. Calculate Happyland's profit-maximizing price, output and economic profit if it charges a single price for all passes. Price (dollars per pass) 10 9 passes a day. Happyland's profit-maximizing output is Happyland's profit-maximizing price is $ >>> Answer to 2 decimal places. 8 7 6 Quantity (passes per day) 0 100 200 300 400 500 600 700 800 Total cost (dollars per day) 1,000 1,600 2,200 2,800 3,400 4,000 4,600 5,200 5,800 a pass. 5 4 3 2 When Happyland produces the profit-maximizing output and charges the profit-maximizing price, economic profit is $ >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign.

Answer 1

Ques! price Q TC TR MR. mc O 10 9 8 2 6 5 100 200 300 400 SOO 600 700 800 1000 1600 2200 2800 B400 4000 4600 Scoo Stoo 900 1600 91100 2400 2500 2400 2100 1600 900 200 500 300 100 -100 - 300 -500 600 GOO 600 600 600 600 Coo 600 3 Now Profit profit max. Quantitity when MR= me But Here when MR~ MC MR> MC 82 Q : 200 oppropriately fit the condition MR = 700 No= 600 and MR> mc MR MC

Hence ma مت output unit. 200 Profit saximising Profit maximiling price g $ and profit is TR-TO ie! 2800 1600 60o - And