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 450 teenagers visit the park, each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has a demand function of q2 = 5-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 pare 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 450 teenagers visit the park, each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has a demand function of q2 = 5-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 pare L=$and p=$. (Enter numeric responses using real numbers rounded to three decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 450 teenagers visit the park,
each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has a
demand function of q₂ = 5-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%2F953166bb-3d83-4e4c-9c38-4712b10da24b%2Fd85da70d-bfa8-4efe-b14c-72f3d80e991d%2Fye1cz3_processed.jpeg&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 450 teenagers visit the park,
each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has a
demand function of q₂ = 5-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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