Knoebel's Amusement park is a free entrance park that charges per ride. Suppose that there are two types of visitors to Knoebel's, senior citizens and teenagers. Their demand curves are given by: Seniors: P=4-qs Teenagers: P=5-qt Combined: P=4.5-0.5q Suppose once the rides are built there are no additional costs per ride. Please use this information to answer the following questions. What is the optimal price to charge if Knoebel's does not price discriminate? What is the Total Revenue?

Knoebel's Amusement park is a free entrance park that charges per ride. Suppose that there are two types of visitors to Knoebel's, senior citizens and teenagers. Their demand curves are given by: Seniors: P=4-qs Teenagers: P=5-qt Combined: P=4.5-0.5q Suppose once the rides are built there are no additional costs per ride. Please use this information to answer the following questions. What is the optimal price to charge if Knoebel's does not price discriminate? What is the Total Revenue?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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