Question: Demand for Desert View campground is P = 1 0 0 0 . 5 X ( X is overnight occupied sites. ) Marginal cost to

Demand for Desert View campground is P =1000.5X (X is overnight occupied sites.) Marginal cost to supply campsites is constant at $50(MC=ATC) and there are 50 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 (i.e., zero profit.) At this price, what is the wait list on weekends? How can managers most efficiently ration demand?

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