Monopoly Rinks is the only ice skating facility in Mapleville. The next closest rink is about 100 miles away. It has determined that its demand curve is
Q = 123 - 0.5P - 0.25 Pc + .01 Y
where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville.
The local economists estimated that Y is equal to $12,000 and Monopoly has set Pc at $10. If Monopoly's MC of serving another customer is equal to $1, what is the profit maximizing price for seasonal passes?© BrainMass Inc. brainmass.com October 10, 2019, 3:03 am ad1c9bdddf
Q=123-0.5P-0.25 Pc+.01 Y
Solution describes the steps to calculate profit maximizing price in the given case.