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Homework answers / question archive / Consider a ski resort owned and operated by a local monopolist
Consider a ski resort owned and operated by a local monopolist. Assume that the resort's clients are of two types: old and young. A typical old client's inverse demand is P=16-Qo and young client's inverse demand is P=20-Qy. Suppose the marginal cost of operating each lift ride is c=$4. Assume that the ski resort owner can identify the true type of each skier, and can prevent reselling.
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