ExcelFileforAssignment3.xlsx

Sheet1

QD P TC TR MR MC
0 70 1000
25 65 1275
50 60 1525
75 55 1750
100 50 1950
125 45 2125
150 40 2275
175 35 2400
200 30 2550
225 25 2725
250 20 2925
275 15 3150
300 10 3400
325 5 3675
350 0 3975
c) Price
c) Quantity
d)

1880 Town is a tourist attraction in Midland, SD. Owners of this attraction have collected buildings built between 1880 and 1920, filled them with antique furniture and collectables, and charge admission for tourists to experience history. Because of the exclusivity and location 1880 Town, this tourist attraction enjoys a measure of monopoly power. Suppose you run a tourist attraction similar to 1880 Town. After running some tests with pricing, you have formulated a daily demand schedule for admission as given. In addition to tracking demand at various price levels, you also monitor costs closely. a) Using the demand schedule provided, find total revenue and marginal revenue at each point. b) Using total costs, find marginal costs at each point. (Just as marginal revenue is the change in total revenue divided by a change in Q, marginal cost is the change in total cost divided by a change in Q.) c) How much should you charge for entrance to the tourist attraction and how many visitors do you expect to have? d) What is profit at this point?