Economics - Marginal Revenue?

Question

Coaster Park Thrills (CPT) is a small roller coaster theme park that sells admission tickets to customers who can then ride all roller coasters for free. Let Q be the number of admission tickets sold each day. Here are the equations for CPT's total cost and marginal cost:

TC = 1,000 + 0.01Q2

MC = 0.02Q

Daily demand for admission tickets can be written as P = 36 - 0.05Q so that MR = 36 - 0.1Q, where P is the price of a ticket and MR is the marginal revenue.

Answer 1

Such simple questions after you have nearly solved the question your self.

If CPT is a profit maximizing objective firm, it will find out the optimal price and ticket quantity combination by setting marginal eaqual to marginal revenue.

So, 0.020 Q = MC= MR= 36-0.1Q or,multiplying by 100 on both sides we get, 2Q= 3600-10 Q or, 12Q= 3600 or Q= 300 tickets. P will be P= 36- 0.05Q= 36 - (5/100)*300=36-15=21

Answer 2

MR=MC

0.02Q=36-0.1Q

0.12Q=36

Q=300