Assist in setting admission prices

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The local space museum has hired you to assist in setting admission prices. As the manager, you recognize that there are two distinct demand curves for admission. One applies to people ages 15 to 64 whereas the other is for children and senior citizens. The two demand curves are: P1 = 9.6 - 0.08Q1 (for adults) and P2 = 4.5 - 0.05Q2 (for children and senior citizens). The corresponding marginal revenue curves are: MR 1 = 120 - 25P1 and MR2 = 90 - 40P2 Crowding is not a problem in the museum, so the marginal cost is zero. Find the profit maximizing prices; the number of adults and children & senior citizens visiting the museum. 

Reference no: EM13785918

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