If an amusement park decides to apply two-part tariff rule to set price, given the demand equation P=6 - 2.5Q and MC =$1, how much is the equilibrium price (P) and quantity (Q). O P=$1; Q=3.
If an amusement park decides to apply two-part tariff rule to set price, given the demand equation P=6 - 2.5Q and MC =$1, how much is the equilibrium price (P) and quantity (Q). O P=$1; Q=3.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 9SQ
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![If an amusement park decides to apply two-part tariff rule to set price, given the demand equation P=6 - 2.5Q
and MC =$1,how much is the equilibrium price (P) and quantity (Q).
OP=$1; Q=3.
P=$3; Q=1.
P=$1; Q=3.5.
P*=$3.5; Q*=1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bbc7d62-50cd-42d7-b712-8d1abc79d458%2F9361ba4d-0639-4b57-b629-20b369091614%2F99rkvp9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If an amusement park decides to apply two-part tariff rule to set price, given the demand equation P=6 - 2.5Q
and MC =$1,how much is the equilibrium price (P) and quantity (Q).
OP=$1; Q=3.
P=$3; Q=1.
P=$1; Q=3.5.
P*=$3.5; Q*=1.
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