Question: I am beginning to work on the problem. Would I need to find the inverse equation first? Can you please help in this problem? An

I am beginning to work on the problem. Would I need to find the inverse equation first? Can you please help in this problem?

An amusement park has estimated the following demand equation for the average park guest

Q=162P

Where Q represents the number of rides per guest and P the price per ride. The total cost of providing rides to a guest is

TC=2+0.5Q

  1. If a one-price policy is used, how much should it charge per ride if the park wishes to maximize its profit?
  2. What is the park's profit for each guest?
  3. If a two-part tariff policy is used, what admission fee should the park charge to maximize its profit?
  4. What is the park's profit for each guest?

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