Answered: If an amusement park decides to apply…

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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.

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