Suppose That 2,000 People Are Interested in Attending ElvisLand

question 18

Multiple Choice

Suppose that 2,000 people are interested in attending ElvisLand.Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{5 - p, 0) , where p is the price per ride.There is a constant marginal cost of $2 for providing a ride at ElvisLand.If ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in.How much should it charge per ride and how much for admission?

• A)$2 per ride and $5 for admission
• B)$2 per ride and $4.50 for admission
• C)$0 per ride and $3 for admission
• D)$0 per ride and $6.50 for admission
• E)$5 per ride and $5 for admission

---

Definitions:

Discriminatory Practices

Actions or policies that treat individuals or groups unfairly based on characteristics such as race, gender, age, or sexual orientation.

Outsourced Suppliers

Third-party companies or individuals that provide goods or services to another company under contract.

Liable

Being legally responsible or obligated to provide compensation for harm, damage, or loss caused by one’s actions or negligence.

Marginal Volunteer

A term that could refer to volunteers who contribute minimally or are on the fringe of volunteer activities, possibly due to limited availability or specific interests. NO.