Suppose That 2,500 People Are Interested in Attending ElvisLand

question 8

Multiple Choice

Suppose that 2,500 people are interested in attending ElvisLand.Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{3 - p, 0} , where p is the price per ride.There is a constant marginal cost of $2 for providing a ride at ElvisLand.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 $3 for admission
• B)$0 per ride and $2.50 for admission
• C)$2 per ride and $.50 for admission
• D)$0 per ride and $1 for admission
• E)$3 per ride and $3 for admission

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Definitions:

Lifetime Annuity Providers

Companies that offer financial products providing a guaranteed income stream for the lifetime of the policyholder, typically used for retirement planning.

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Health Insurance Providers are companies or organizations that offer plans aimed at covering the costs of medical care for insured individuals or entities.

Return On Investment

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Nearest Hundred Thousand

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