Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is _____, the third day is _____, and the fourth day is _____.

Question

Quizplus · Accepted Answer

The marginal cost of visiting the second day is the difference between the two-day ticket and the one-day ticket, which is $80 - $50 = $30. The marginal cost of visiting the third day is the difference between the annual pass and the two-day ticket divided by the remaining days of the year (assuming a 365-day year for simplicity), but since it's the cost to start going "for free" after the initial investment, it's more straightforward to consider that the third day effectively costs $20 more than the two-day ticket, making the annual pass accessible. However, for simplicity and direct comparison, the third day's marginal cost is better understood as the cost to upgrade to an annual pass from a two-day ticket, which is $100 - $80 = $20, assuming the person decides to upgrade at this point. The fourth day and any day after within the year do not incur additional costs beyond the annual pass price, making the marginal cost $0.

Admission Prices to Dollywood Are $50 for a One-Day Ticket