An Amusement Park's Customers Have the Demand Curve for Park

question 83

Multiple Choice

An amusement park's customers have the demand curve for park rides given by Q = 11 - 0.5P, where P is the price per ride and Q is the number of rides. The marginal cost is $4. If the amusement park uses a two-part tariff, the park's entrance fee is _____, and its price per ride is _____.

• A) $81; $4
• B) $100; $11
• C) $40; $4
• D) $22; $2

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Definitions:

Price of Rubber

The Price of Rubber refers to the current market price for rubber, which fluctuates based on supply and demand dynamics.

Technology of Tire Production

The methods and processes used in the manufacturing and design of tires, including materials selection, shaping, and curing techniques to meet specific performance criteria.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in a stable market condition.

Equilibrium Quantity

The quantity of a good or service at which demand and supply are equal at a particular price level, leading to a stable market situation.