Our special projects are coming along nicely. Revenue from our new Network Phillies MLB Network (PMN) has left us with funds to build our next project... an All Philadelphia Theme Park to rival Disney! As the only Philly sports theme park and local monopoly, we need to carefully consider the pricing of this exciting park. Rather than charge a per attraction fee, I am considering bundling the rides and attractions into one entrance fee charged at the entrance gate to simplify things. A typical consumer's demand for the park is expected to be Qd = 40 - 0.25P, and the marginal cost of production is estimated at $120.
Usually people will participate on average in about 9 rides and attractions while at a theme park, how will our park usage compare?
What is the optimal number of rides and attractions to put into the bundle? What should we charge for the bundle?