Amusement Park X has higher demand during Christmas (D1 = P1 = 20 - 0.02Q1) than in other months (D2 = P1 = 2 - 0.002Q2); where Q = number of customers. The cost is the same for all months (C = Q + 0.002Q2).
(a) What type of pricing scheme can Amusement Park X use in order to control the number of customers and to ensure it is self-supporting. Compute for P1, P2, Q1 and Q2 in this pricing scheme.
(b) Is it profitable for Amusement Park X to employ uniform pricing scheme for all months? Why or why not?

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a Amusement Park X can use a twopart pricing scheme in order to control the number of cus... View the full answer