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Consider a ski resort owned and operated by a local monopolist. Assume that the resort's clients are of two types: old and young.
A typical old client's inverse demand is P = 12 - Qo and young client's inverse demand is P = 16 - Qy.
Suppose the marginal cost of operating each lift ride is c = $4 and fixed cost of operating each day is $0.
First, assume that the ski resort owner can identify the true type of each skier, and can prevent reselling.
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