The snow city ski resort caters to both out-of-town skiers


The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets of out-of-town skiers is given by Qo = 600 - 10 Po, while the demand for ski tickets of local skiers is given by Ql = 400 - 20 Pl . The marginal cost of servicing a skier of either type is $10. If Snow City Ski Resort (third-degree) price discriminates then the profit maximizing prices (for a ski ticket) are

Po = 35, Pl = 2

Po = 30, Pl = 25

Po = 15, Pl = 28

None of the above

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Business Economics: The snow city ski resort caters to both out-of-town skiers
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