Question: A theme park in Halifax charges an access fee, A, to enter its pool. It also charges p per trip down the pool's water slides.
A theme park in Halifax charges an access fee, A, to enter its pool. It also charges p per trip down the pool's water slides. Suppose that 400 teenagers visit the park, each of whom has the demand function of q1 = 5 - p, and that 400 seniors also visit, each of whom has a demand function of q2 = 4 - p. The company's objective is to set A and p to maximize its profit given that it has no (non-sunk) cost. What are the optimal A and p
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
