Big Waves is a large water park. Suppose the individual demand for entrance into Big Waves is Qd = 50 - (2 × P)and each consumer has the same demand. Big Waves has a constant marginal cost of
$5 per consumer. If Big Waves charges the profit- maximizing single entry price to each consumer and offers the profit- maximizing number of entries, what is Big Waves profit per consumer?
A)$200
B)$300
C)$100
D)$250

Question

Quizplus · Accepted Answer

The profit-maximizing single entry price is $25, and the profit-maximizing number of entries is 10. So, the profit per consumer is $250.

Big Waves Is a Large Water Park