Question: ( 2 0 ) Demand for Desert View campground is P = 1 0 0 - 0 . 5 x ( X is overnight occupied
Demand for Desert View campground is X is overnight occupied sites. Marginal cost to supply campsites is constant at $MCATC and there are campsites.
a Find the efficient number of campsites used and overnight fee to charge.
b Does the campground generate a profit, loss, or breakeven at the fee calculated in part a
c Suppose the campground is required to set a price to just cover its average costs ie zero profit. At this price, what is the wait list on weekends? How can managers most efficiently ration demand?
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