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Econ Adventures Park has local and visiting customers. The demand curve for local customers is QL= 2500-10PL, and the demand for visiting customers is QV= 1500 -5PV, where Q is the quantity of admission tickets demanded. The marginal cost of serving a customer is constant at $150.
a. What are the price and quantity sold of admission tickets if Econ Adventures charges both customers the same price for admission?
b. What profit would Econ Adventures earn if they charged all customers the same price?
c. What are the price and quantity sold of admissions in the local market if Econ Adventures segments the market for admission tickets and charges different prices for locals and visitors?
d. What are the total profits for Econ Adventures if the markets are segmented?
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