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The demand curve for tickets at an amusement park is:
Q=D(p)=1700-48p
Q=D(p)=1700-48p, p > 0
All customers pay the same ticket price. The marginal cost of serving a customer is $14.
Using calculus and formulas (don't just build a table in a spreadsheet as in the Marginal Analysis I lesson) to find a solution, what is the total contribution margin (revenue less variable costs) to the amusement park?
Round the equilibrium quantity DOWN to its integer part and round the equilibrium price to the nearest cent.
Hint: The first derivative of the total revenue function, which is cumulative, is the marginal revenue function, which is incremental. The formula summary explains how to compute the derivative.
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