Question

Disney World charges two different prices for adult and child daily general admission to the park....

Disney World charges two different prices for adult and child daily general admission to the park. The price of an adult ticket is $122. The price of a child ticket (ages 3–9) is $117. Since the park is already established and operating, suppose the marginal cost of each additional ticket is constant at $90. Using this information, graph each market segment for Disney. Include the marginal revenue, marginal cost, and demand curves for each segment.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It shall be observed that the firm Disney World could charge different prices to adults and children in order to get them right to admission to the park.

P1 = Price of an adult ticket = $122

P2 = Price of the child ticket (age 3-9) = $117

The marginal cost of each additional ticket = constant = $90

On graphing each market segment for Disney the result is:

Thus, the marginal revenue (MRa: Market A and MRb: Market B) and the marginal cost (horizontal dotted line at $50) and the demand curve (Da: Market A and Db: Market B) are also shown.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The local zoo has hired you to assist them in setting admission prices. The zoo's managers...
The local zoo has hired you to assist them in setting admission prices. The zoo's managers recognize that there are two distinct demand curves for zoo admission. One demand curve applies to those ages 12 to 64, while the other is for children and senior citizens. The two demand curves are: PA = 9.6 - 0.08QA PCS = 4 - 0.05QCS where PA = adult price, PCS = children's/senior citizens' price, QA = daily quantity of adults, and QCS =...
The local zoo has hired you to assist them in setting admission prices. The zoo's managers...
The local zoo has hired you to assist them in setting admission prices. The zoo's managers recognize that there are two distinct demand curves for zoo admission. One demand curve applies to those ages 12 to 64, while the other is for children and senior citizens. The two demand curves are: PA = 9.6 - 0.08QA PCS = 4 - 0.05QCS where PA = adult price, PCS = children's/senior citizens' price, QA = daily quantity of adults, and QCS =...
      MK Restaurant: Branding of Thai-Style Hotpot The restaurant industry is one of the most...
      MK Restaurant: Branding of Thai-Style Hotpot The restaurant industry is one of the most competitive in Thailand. With a large number of players ranging from restaurants in five-star hotels, global fast-food chains to small stalls along the streets and everything in between, the Thais are spoiled for choice. In addition, as the world becomes globalized, consumers are familiar with international dishes and would not hesitate to try new offerings from the other side of the globe. As a...
Mattel Responds to Ethical Challenges Business Ethics This case was written by Debbie Thorne, John Fraedrich,...
Mattel Responds to Ethical Challenges Business Ethics This case was written by Debbie Thorne, John Fraedrich, O. C. Ferrell, and Jennifer Jackson, with the editorial assistance of Jennifer Sawayda. This case was developed for classroom discussion rather than to illustrate either effective or ineffective handling of an administrative, ethical, or legal discussion by management. All sources used for this case were obtained through publicly available material. Mattel, Inc. is a world leader in the design, manufacture, and marketing of family...
Exploring Innovation in Action Power to the People – Lifeline Energy Trevor Baylis was quite a...
Exploring Innovation in Action Power to the People – Lifeline Energy Trevor Baylis was quite a swimmer in his youth, representing Britain at the age of 15. So it wasn’t entirely surprising that he ended up working for a swimming pool firm in Surrey before setting up his own company. He continued his swimming passion – working as a part-time TV stuntman doing underwater feats – but also followed an interest in inventing things. One of the projects he began...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT