# Managerial economics and globalization

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

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 Price (\$) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

 Price Quantity Total Revenue Marginal Revenue Marginal Cost Total Cost MR-MC Profit 84 5.00 30.00 54.00 91 7.00 5.00 35.00 2.00 96 5.00 5.00 40.00 0.00 99 3.00 5.00 45.00 -2.00 100 1.00 5.00 50.00 -4.00 99 -1.00 5.00 55.00 -6.00 96 -3.00 5.00 60.00 -8.00 91 -5.00 5.00 65.00 -10.00 84 -7.00 5.00 70.00 -12.00 75 -9.00

### Question 5

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is average variable cost.Ignore fixed costs. The owners of the amusement part want to maximize profits.

 Price (\$) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the child’s market

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

 Price Quantity Total Revenue Marginal Revenue Marginal Cost Total Cost MR-MC Profit 52 5.00 20.00 72 10.00 5.00 30.00 5.00 88 8.00 5.00 40.00 3.00 100 6.00 5.00 50.00 1.00 108 4.00 5.00 60.00 -1.00 112 2.00 5.00 70.00 -3.00 112 0.00 5.00 80.00 -5.00 108 -2.00 5.00 90.00 -7.00 100 -4.00 5.00 100.00 -9.00 88 -6.00 5.00 110.00 -11.00

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

 Price (\$) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2

Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined