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Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is p Subscript Upper Sequals400minus2Upper Q Subscript Upper S. In winter
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Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is p Subscript Upper Sequals400minus2Upper Q Subscript Upper S. In winter the inverse demand is p Subscript Upper Wequals400minusUpper Q Subscript Upper W. Paradise has a total of 150 yachts available for rental on a monthly basis. Which season is peak​ season? ​ Why? What are the​ profit-maximizing prices in both​ seasons? Assume marginal cost is zero. Peak season is winter because demand is higher . The​ profit-maximizing peak-load price for the summer is p Subscript Upper Sequals​$ nothing and the optimal​ peak-load price for the winter is p Subscript Upper Wequals​$ nothing. ​(

User Lluis Gerard
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Answer:

Step-by-step explanation:

In economics, profit maximization is an optimization problem for producers, who choose the quantity of output to maximize revenue net of total costs. Profit is maximized when the marginal revenue form the last unit produced is equal to the marginal cost.

Answer and Explanation:

The Winter is the peak season because for the same quantity demanded, consumers are willing to offer a higher price, as indicated by the demand curve.

User Therealjumbo
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