A local zoo observes the following demand schedule.
Ticket Price 
Tickets Sold 
$50 
300 
$40 
400 
$30 
500 
$20 
550 
$10 
650 
The zoo knows that senior citizens all value tickets at $20 or
less, and younger visitors all value tickets at $30 or more.
Marginal costs are zero. The optimal prices for fullprice tickets
and senior citizen tickets are:







Since the marginal cost is zero the aim of the local zoo should be maximizing the revenue generated from the sale of tickets. If the price for younger visitors is $50, a total of 300 X 50 or $15,000 is collected, and if the price for senior citizens is $10 a total of 10 x 650 or $6,500 is collected. In this case total revenue is $21,500
If the price for younger visitors is $40, a total of 40 X 400 or $16000 is collected and if the price for senior citizens is $10 total of 10 X 550 or $5500 is collected. In this case total profit is $21,500
Therefore the revenue for the profit is maximized when younger visitors are charged $40 and senior citizens are charged $10. Select option B
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