Sharon owns a plot of land in the desert that isn\'t worth much. One day, a gian

Question

Sharon owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on her property, making a large crater. The event attracts scientists and tourists, and Sharon decides to sell nontransferable admission tickets to the meteor crater to both types of visitors: scientists (Market A) and tourists (Market B). The following graphs show daily demand (D) curves and marginal revenue (MR) curves for the two markets. Sharon's marginal cost of providing admission tickets is zero Market A Market B 20 18 16 20 18 16 12 12 10 O 10 2 2 MR MRR De 0 0 0 36 9 12 15 18 21 24 27 30 0 36 9 12 15 18 21 24 27 30 QUANTITY (Admission tickets) QUANTITY (Admission tickets) Suppose that at first, Sharon charges the same price of $8 per admission in both markets so that the total number of admissions demanded is 24 tickets.

Explanation / Answer

YES

NON DIS =24*8= 192

DIS=(10*15)+(6*9)=204

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