Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool. It also charges p per trip down a slide on the pool's water slides. Suppose that 400 teenagers visit the park, each of whom has a demand function of q₁ = 6 - p, and that 350 seniors also vist, each of whom has a demand function of q₂ =3-p. Knoebels's objective is to set L and p so as to maximize its profit given that it has no (non-sunk) cost and must charge both groups the same prices. What are the optimal L and p? The optimal L and p are L= $ and p =$ (Enter numeric responses using real numbers rounded to three decimal places.)
Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool. It also charges p per trip down a slide on the pool's water slides. Suppose that 400 teenagers visit the park, each of whom has a demand function of q₁ = 6 - p, and that 350 seniors also vist, each of whom has a demand function of q₂ =3-p. Knoebels's objective is to set L and p so as to maximize its profit given that it has no (non-sunk) cost and must charge both groups the same prices. What are the optimal L and p? The optimal L and p are L= $ and p =$ (Enter numeric responses using real numbers rounded to three decimal places.)
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter13: Between Competition And Monopoly
Section: Chapter Questions
Problem 5DQ
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![Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool. It
also charges p per trip down a slide on the pool's water slides. Suppose that 400 teenagers visit the park, each
of whom has a demand function of q₁ = 6 -p, and that 350 seniors also vist, each of whom has a demand
function of q₂ =3-p. Knoebels's objective is to set L and p so as to maximize its profit given that it has no
(non-sunk) cost and must charge both groups the same prices. What are the optimal L and p?
The optimal L and p are
L= $ and p = $
(Enter numeric responses using real numbers rounded to three decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1535e124-d938-4d49-9f2e-fbde5a441702%2F46a61074-eb1f-440e-8fa3-516614620d18%2F5ousap_processed.png&w=3840&q=75)
Transcribed Image Text:Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool. It
also charges p per trip down a slide on the pool's water slides. Suppose that 400 teenagers visit the park, each
of whom has a demand function of q₁ = 6 -p, and that 350 seniors also vist, each of whom has a demand
function of q₂ =3-p. Knoebels's objective is to set L and p so as to maximize its profit given that it has no
(non-sunk) cost and must charge both groups the same prices. What are the optimal L and p?
The optimal L and p are
L= $ and p = $
(Enter numeric responses using real numbers rounded to three decimal places.)
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