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We are opening a winter lodge. our market consist of two segments: locals and visitors. to service each customer, there is a MC of $10. marginal cost is equal to average cost. the demand curve for visitors is Q=500- 10 P, and for locals, it is Q=500-20P.
A. Determine the equilibrium P and Q for each market segment and the total profit in each segment. the overall market (both segments) in question 1 is Q= 1000-30P.
B. What is the equilibrium P and Q, and the total profit by charging a uniform price?
The marginal cost and average cost assumptions are the same.
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Lowering the interest rate will
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