The following table shows the daily demand schedule for round-trip train commutes between Dallas and Los Angeles for travelers: Demand Schedule of Business Travelers Price QD $1,100 310 $810 510 $510 810 $310 1,100 Suppose a train line's marginal cost per seat for the round-trip is $300. For profit-maximization, how much should the train-line charge per round-trip? Show your process using the half-way rule of Marginal Revenue for a monopoly.

Price, P Qd Total revenue, TR = P*Q Marginal Revenue, MR = Change in TR/Change in Q…

Answered: The following table shows the daily…

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

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 9CQ

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The following table shows the daily demand schedule for round-trip train commutes between Dallas and Los Angeles for travelers:

Demand Schedule of Business Travelers
Price	Q_D
$1,100	310
$810	510
$510	810
$310	1,100

Suppose a train line's marginal cost per seat for the round-trip is $300. For profit-maximization, how much should the train-line charge per round-trip? Show your process using the half-way rule of Marginal Revenue for a monopoly.

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