The Snow City Ski Resort

The Snow City Ski Resort

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 = 600 – 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 Answer Po = $35 and Pl = $20 Po = $30 and Pl = $25 Po = $15 and Pl = $28 None of the above

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