Wet-n-Wild Indoor Water Park offers family fun year-round in the Northstar state to locals and out-of-state visitors.The demand for day passes to the water park for each market segment is independent of the other market segment.The marginal cost of providing service to each visitor is $5 per day.Suppose the daily demand curves for the two market segments are .
(a)If Wet-n-Wild Indoor Water Park charges one price to all visitors,what is the profit maximizing price? How many day passes will be sold per day?
(b)If Wet-n-Wild Indoor Water Park charges one price to locals,what is the profit maximizing price for locals? How many day passes will be sold per day to locals?
(c)If Wet-n-Wild Indoor Water Park charges one price to out-of-towners,what is the profit maximizing price for out-of-town guests? How many day passes will be sold per day to out-of-town guests?
(d)Compare the prices from uniform pricing to the prices from price discrimination.

Question

Wet-n-Wild Indoor Water Park offers family fun year-round in the Northstar state to locals and out-of-state visitors.The demand for day passes to the water park for each market segment is independent of the other market segment.The marginal cost of providing service to each visitor is $5 per day.Suppose the daily demand curves for the two market segments are  .
(a)If Wet-n-Wild Indoor Water Park charges one price to all visitors,what is the profit maximizing price? How many day passes will be sold per day?
(b)If Wet-n-Wild Indoor Water Park charges one price to locals,what is the profit maximizing price for locals? How many day passes will be sold per day to locals?
(c)If Wet-n-Wild Indoor Water Park charges one price to out-of-towners,what is the profit maximizing price for out-of-town guests? How many day passes will be sold per day to out-of-town guests?
(d)Compare the prices from uniform pricing to the prices from price discrimination.

Quizplus · Accepted Answer

The Answer of Wet-n-Wild Indoor Water Park offers family fun year-round in the Northstar state to locals and out-of-state visitors.The demand for day passes to the water park for each market segment is independent of the other market segment.The marginal cost of providing service to each visitor is $5 per day.Suppose the daily demand curves for the two market segments are  .
(a)If Wet-n-Wild Indoor Water Park charges one price to all visitors,what is the profit maximizing price? How many day passes will be sold per day?
(b)If Wet-n-Wild Indoor Water Park charges one price to locals,what is the profit maximizing price for locals? How many day passes will be sold per day to locals?
(c)If Wet-n-Wild Indoor Water Park charges one price to out-of-towners,what is the profit maximizing price for out-of-town guests? How many day passes will be sold per day to out-of-town guests?
(d)Compare the prices from uniform pricing to the prices from price discrimination.

Wet-N-Wild Indoor Water Park Offers Family Fun Year-Round in the Northstar