Image transcription text Playland at the PNE is an amusement park in Vancouver (httpsz/lwwwpne.ca/playlandl). The guests who are 48" or taller can go on any

Image transcription text Playland at the PNE is an amusement park in Vancouver (httpsz/lwwwpne.ca/playlandl). The guests who
are 48" or taller can go on any ride they want and so they get more value from visiting the park; let us say
their individual demand is given by P = 4 — 0.2qT, where P is the price per ride ($ per ride) and qr is the
number of the rides (per day per guest) (the subscript T stands for “Thrill Seeker Pass;” that’s how the
park calls its passes for the guests who are 48" or taller). The guests who are under 48" are not allowed on
certain rides so they get less value from visiting the park; let us say their individual demand is given by P
= 3.6 — 0.2qp, where P is the price per ride ($ per ride) and qp is the number of the rides (per day per
guest) (the subscript F stands for “Fun Pass;” that’s how the park calls its passes for the guests under 48").
Assume it costs the park fiat 020 per guest to operate a single ride, and it costs the park flat ¢40 to issue a
single ticket to a ride. Assume there are 500 guests 48" or taller and 500 guests under 48" on an average
day. Playland is a monopolist amusement park in Vancouver. 1. If Playland charged everyone the same flat uniform price per ride (no entry fee; each ride must be
ticketed),
a. what is the profit-maximizing price ($ per ride)? (1)

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