Question

Hershey Park sells tickets at the gate and at local municipal offices. There are two groups of people. Suppose that the demand function for people who purchase tickets at the gate is Upper Q Subscript Upper Gequals18 comma 000minus100p Subscript Upper G and the demand function for people who purchase tickets at municipal offices is Upper Q Subscript Upper Mequals11 comma 000minus100p Subscript Upper M. The marginal cost​ (m) of each patron is ​$15.00. Suppose that Hershey Park cannot successfully segment the two markets. What are the profit-maximizingLOADING... price and​ quantity? The​ profit-maximizing price is pequals​$ nothing and the​ profit-maximizing quantities are Upper Q Subscript Upper Gequals nothing units and Upper Q Subscript Upper Mequals nothing units. ​(Enter numeric respon

Answer 1

13,000

$80

Explanation:

As per the data given in the question, the computation is shown below:

Market demand function Q = 18,000 - 100P + 11,000 - 100P

Q = 29,000 - 200P

Divide by 200

The inverse function P = 145 - (Q ÷ 200)

TR = P×Q = 145Q - 0.005Q^2

MR = 145 - (1 ÷ 100)

Q = 145 - 0.01Q

Marginal cost (MC) = 15

At equilibrium MR = MC

145 - 0.01Q = 15

Q = 13,000

P = 145 - 0.005 × 13,000 = $80