A) A ski school faces two demand curves. The demand by Locals is QL = 200...

A) A ski school faces two demand curves. The demand by Locals is QL = 200 – 0.5PL, and the demand by Visiting tourists is QV = 300 – 0.5PV. The marginal cost of serving either locals or visitors is constant at MC = $50. If the ski school CANNOT practice third-degree price discrimination and must charge a single price to all customers, it will charge $_____

B) A ski school faces two demand curves. The demand by Locals is Q_L = 200 – 0.5P_L, and the demand by Visiting tourists is Q_V = 300 – 0.5P_V. The marginal cost of serving either locals or visitors is constant at MC = $50. If the ski school practices third-degree price discrimination, it will charge Locals a price of P_L = $ ______ and Visitors a price of P_V = $ _______

Expert Solution

Rahul Sunny answered 2 years ago

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