Paper Writing Services leave. Some existing firms would stay but no new firms would enter. There is not enough information to make ts determination. Price

Price (P) Quantity (Q) $80 20,000 70 25,000 60 30,000 50 35,000 Suppose further that all three firms are selling their product for $60 and each has about one-trd of the total market. What is the amount of total revenue each firm receives, in dollars? Each firm has less revenue. Each firm has more revenue. The price-dropper has more revenue and the others have less. The price-dropper has less revenue and the others have more. Raising to $70 Lowering to $50 Making no change (keeping price at $60) P = $45 – $0.2Q MR = $45 – $0.4Q TC = $500 + $5Q MC = $5 What quantity would maximize profits for ts firm? (nt: Recall that profit maximizing is where MR = MC) New firms would enter. Some existing firms would leave. Some existing firms would stay but no new firms would enter. There is not enough information to make ts determination. Price ($) Quantity, Adults Quantity, Cldren 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 The marginal operating cost of each unit of quantity is $5. (nt: Because marginal cost is a constant, so is average variable cost. Ignore fixed cost.) The owners of the amusement park want to maximize profits. Calculate the price, quantity, and profit for each segment if the amusement park charges a different price in each market. (nt: calculate profit at each price in the adult market, then in the cld market, and choose profit maximizing in each. Using a spreadsheet would make ts task manageable.) Adult market price (in dollars): [a] Adult market quantity: [b] Adult market profit (in dollars): [c] Cld market price (in dollars): [d] Cld market quantity: [e] Cld market profit (in dollars): [f] Total profit (adult + cld, in dollars): [g] Market price (in dollars): [a] Quantity (cld + adult at ts price): [b] Profit: [c] gher profit with split pricing Lower profit with split pricing Same profit with split pricing Cannot determine with the information available Wch firm is the most profitable in ts market? Gray (Profit is ghest in every situation.) Wte Neither – they are equally profitable Neither – there is no profit made by either firm Open Sundays Closed Sundays There is no dominant strategy Open Sundays Closed Sundays There is no dominant strategy Both open Sundays Both closed Sundays **Wte open Sundays, Gray closed Sundays Wte closed Sundays, Gray closed Sundays Yes, the position identified in the previous question is the best outcome for both. No, it would be mutually advantageous to cooperate and choose a different outcome. Gray could do better, but Wte is already in the best position and would therefore need an incentive to cooperate. Wte could do better, but Gray is already in the best position and would therefore need an incentive to cooperate.