Math Solutions

[See Solution] Disneyland has two possibilities for pricing rides at its theme parks: (1) Set MR=MC for each ride and charge the maximum price consumers

Question: Disneyland has two possibilities for pricing rides at its theme parks: (1) Set \(MR=MC\) for each ride and charge the maximum price consumers will bear. (2) Charge an admission fee to the theme park but allow unlimited rides for free. Using graphs show which pricing scheme is more profitable for Disneyland. Justify your answer with detail explanation.

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