The marginal operating cost of each unit of quantity is $5 (since marginal cost is a constant, so is average variable cost. Ignore fixed cost). The owners of the amusement park wish to maximize profits. Calculate the price, quantity and profit if: a. The amusement park charges a different price in each market. b. The amusement park charges the same price in the two markets combined.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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The marginal operating cost of each unit of quantity
is $5 (since marginal cost is a constant, so is average
variable cost. Ignore fixed cost). The owners of the
amusement park wish to maximize profits.
Calculate the price, quantity and profit if:
a. The amusement park charges a different price in
each market.
b. The amusement park charges the same price in
the two markets combined. 

Price
5
6
7
8
9
10
11
12
13
14
Adult
15
14
13
12
11
10
9
8
7
6
Children
20
18
16
14
12
10
8
6
4
2
Transcribed Image Text:Price 5 6 7 8 9 10 11 12 13 14 Adult 15 14 13 12 11 10 9 8 7 6 Children 20 18 16 14 12 10 8 6 4 2
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