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(See Solution) s 11 through 13 refer to the scenario that follows. An amusement park, whose customer set is made up of two markets, adult and children,

Question: Questions 11 through 13 refer to the scenario that follows. An amusement park, whose customer set is made up of two markets, adult and children, has developed demand schedules as follows:

Price ($)	Quantity, Adults	Quantity, Children
5	15	20
6	14	18
7	13	16
8	12	14
9	11	12
10	10	10
11	9	8
12	8	6
13	7	4
14	6	2

The marginal operating cost of each unit of quantity is $5. (Hint: Because marginal cost is a constant, so is average variable cost. Ignore fixed cost.) The owners of the amusement park want to maximize profits.

Calculate the price, quantity, and profit for each segment if the amusement park charges a different price in each market. (Hint: calculate profit at each price in the adult market, then in the child market, and choose profit maximizing in each. Using a spreadsheet would make this task manageable.)

Adult market price (in dollars): [a]

Adult market quantity: [b]

Adult market profit (in dollars): [c]

Child market price (in dollars): [d]

Child market quantity: [e]

Child market profit (in dollars): [f]

Total profit (adult + child, in dollars): [g]

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document

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(See Solution) s 11 through 13 refer to the scenario that follows. An amusement park, whose customer set is made up of two markets, adult and children,

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