# ECO550 Strayer University Price Quantity and Profit Calculations Answers

Anonymous

### Question Description

QUESTION 4

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

 Price (\$) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

 Price Quantity Total Revenue Marginal Revenue Marginal Cost Total Cost MR-MC Profit 6 84 5 30 34 13 91 7 5 35 2 56 12 8 96 5 5 40 0 9 99 3 5 45 -2 54 10 100 1 5 50 -4 50 9 11 99 -1 5 55 -6 12 96 -3 5 60 -8 36 7 91 -5 5 65 -10 26 6 14 84 -7 5 70 -12 5 15 75 -9 5 75 -14 0

30 points

• Question 4 of 9
• Moving to another question will save this response.

QUESTION 5

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

 Price (\$) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the child's market

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

 Price Quantity Total Revenue Marginal Revenue Marginal Cost Total Cost MR-MC Profit 14 2 28 5 10 13 52 12 5 20 7 32 6 72 10 5 30 5 42 11 8 88 8 5 40 3 48 10 10 100 6 5 50 1 9 108 4 5 60 -1 48 14 112 2 5 70 -3 42 7 16 112 0 5 80 -5 6 108 -2 5 90 -7 18 20 100 -4 5 100 -9 0

QUESTION 6

Question 6

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

 Price (\$) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2

Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined

Please use whole numbers for Quanitity (i.e. 10, 27, 4)

 Price Quantity Total Revenue Marginal Revenue Marginal Cost Total Cost MR-MC Profit 14 8 112 5 40 72 11 143 10.33 5 55 5.33 88 12 168 8.33 5 70 3.33 98 11 17 187 6.33 5 85 1.33 20 200 4.33 5 100 -0.67 100 9 207 2.33 5 115 -2.67 92 8 26 208 0.33 5 130 -4.67 29 203 -1.67 5 145 -6.67 58 6 192 -3.67 5 160 -8.67 5 35 175 -7.67 5 190 -12.67 -38

QUESTION 7

Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.)

Make sure you include the profit with and without price discrimination in your answer.

QUESTION 8

Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.

Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below.

The cost to Time Warner is \$1 per customer for licensing fees.

Preferences

 Showtime History Chanel Customer 1 9 2 Customer 2 3 8

Should Time Warner bundle or sell separately? Your answer needs to include the unbundled and bundled profits.

QUESTION 9

Suppose Time Warner could sell Showtime for \$9, and History channel for \$8, while making Showtime-History bundle available for \$13. Should it use mixed bundling. i.e., sells products both separately and as a bundle?

### Unformatted Attachment Preview

Purchase answer to see full attachment

TutorAR
School: UT Austin

Hi, Find attached the paper for your review.Let me know if you need anything edited or changed.Looking forward to working with you again in future.Thank you
Attached.

QUESTION 4
An amusement park, whose customer set is made up of two markets, adults and children, has
developed demand schedules as follows:

The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant,
so is average variable cost. Ignore fixed costs. The owners of the amusement part want to
maximize profits.

Quantity
Price (\$)
5
6
7
8
9
10
11
12
13
14

15
14
13
12
11
10
9
8
7
6

Children
20
18
16
14
12
10
8
6
4
2

Calculate the price, quantity, and profit if: The amusement park charges a different price
Please use whole numbers for Quanitity (i.e. 10, 27, 4)

Total
Price

Quantity
6

14

13
12

7

8

Marginal Marginal Total

Revenue Revenue

Cost

MRCost MC Profit

84
91

7

5
5

96

5

5

30
35

2

40

0

34
56
56

9

11

10

3

5

45

-2

54

100

1

5

50

-4

50

11

99

-1

5

55

-6

12

96

-3

5

60

-8

36

91

-5

5

65

-10

26

10

9
8

7

99

13

6

14

84

-7

5

70

-12

5

15

75

-9

5

75

-14

44

14

0

Adult market quantity = 7 units

QUESTION 5
An amusement park, whose customer set is made up of two markets, adults and children, has developed
demand schedules as follows:
The marginal operating cost of each unit of quantity is \$5. Because marginal cost is a constant, so is
average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Quantity
Price (\$)

Children

5

15

20

6

14

18

7

13

16

8

12

14

9

11

12

10

10

10

11

9

8

12

8

6

13

7

4

14

6

2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the child's
market

flag Report DMCA
Review

Anonymous
I was on a very tight deadline but thanks to Studypool I was able to deliver my assignment on time.

Anonymous
The tutor was pretty knowledgeable, efficient and polite. Great service!

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors