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Customers Attending Basketball Games at the Local Arena Must Pay

question 46

Essay

Customers attending basketball games at the local arena must pay for parking on the grounds and then pay for a ticket needed to enter the arena. If the arena manager knows that the customers' identical demands can be expressed collectively as
P = 25 - 0.000625Q
how much of a parking fee could the management collect if the marginal cost of providing entertainment were a constant MC = $10 per seat?


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