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In a two-part tariff scheme,
x1: P = 7 - 0.25q1,
x2: P = 5.5 - 0.25q2
Assume it costs the park flat ¢25 per guest to operate a single ride, and it costs the park flat ¢75 to issue a single ticket to a ride.
What would be the gate entry fee for x1?
I thought entry fee is $72 because marginal cost is 1$ (=0.25 + 0.75), so
1 = 7 - 0.25*q1
q1 = 24
So entry fee is (7-1)*24 /2 = 72$.
But it is wrong answer. Why?
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