Suppose the individual demand for rides at an amusement park is represented by the demand function y = 10-p , where y is the number of rides and p is the price per ride.
The amusement park incurs a constant marginal cost of $2 per ride. Suppose, in order to maximize profit, the amusement park practices a two-part tariff. How much will the park charge per ride and what will be the entrance fee?