Question: The National Park Service charges visitors to a certain monument a $5 per car admission fee and an additional fee of $5 per camera. Is this necessarily price discrimination or might it be based on costs? If it is price discrimination, is it consistent with the elasticity of demand rule? Give a possible cost-based explanation.
a. Now assume, as seems reasonable, that the government is not trying to maximize its profit from operating this monument. How might its per-car and percamera prices change if it wants to maximize its revenue from visitors? How about if it is interested in maximizing the number of visitors, subject to covering its cost of operation?
b. On a graph, show the two outcomes you derived for part a.