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The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for...

The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets of out-of-town skiers is given by Q o = 800 - 16  P o, while the demand for ski tickets of local skiers is given by Q l = 800 - 20 P l . The marginal cost of servicing a skier of either type is $10. If Snow City Ski Resort (third-degree) price discriminates then the profit maximizing prices (for a ski ticket) are

P o = $35 and P l = $20

P o = $30 and P l = $25

P o = $15 and P l = $28

None of the above

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Answer #1

Ans.- Prorit is mesci 及ed bg equating MRLmanginal ever ve/ 0 800-16 Po and 1 800-20p mco = MCI, 10 o800 6 1 6 o50 Qo IC MRo == 800-20a = (40..@yxQl 400 MR, 40-2Q1 Equating MR wt MC 20 - 4015 The erotit mami

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