Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool.It also charges p per trip down a slide on the pool's water slides. Suppose that 450 teenagers visit the park,each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has ademand function of q₂ = 5-p. Knoebels's objective is to set L and p so as to maximize its profit given that ithas no (non-sunk) cost and must charge both groups the same prices. What are the optimal L and p?The optimal L and p areL=$and p=$. (Enter numeric responses using real numbers rounded to three decimal places.)

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Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool. It also charges p per trip down a slide on the pool's water slides. Suppose that 450 teenagers visit the park, each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has a demand function of q2 = 5-p. Knoebels's objective is to set L and p so as to maximize its profit given that it has no (non-sunk) cost and must charge both groups the same prices. What are the optimal L and p? The optimal L and pare L=$and p=$. (Enter numeric responses using real numbers rounded to three decimal places.)

Knoebels Amusement Park in Elysburg, Pennsylvania, charges a lump-sum fee, L, to enter its Crystal Pool. It also charges p per trip down a slide on the pool's water slides. Suppose that 450 teenagers visit the park, each of whom has a demand function of q₁ = 6-p, and that 300 seniors also vist, each of whom has a demand function of q2 = 5-p. Knoebels's objective is to set L and p so as to maximize its profit given that it has no (non-sunk) cost and must charge both groups the same prices. What are the optimal L and p? The optimal L and pare L=$and p=$. (Enter numeric responses using real numbers rounded to three decimal places.)

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 7CQ

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