Author Question: A one-day ticket to Sea World costs 37, but a two-day pass costs 42 . What is the average cost per ... (Read 74 times)

ereecah

  • Hero Member
  • *****
  • Posts: 530
A one-day ticket to Sea World costs 37, but a two-day pass costs 42 . What is the average cost per day for a one-day pass? For a two-day pass? What is the marginal cost of a second day at Sea World? Why might Sea World charge such a price for a second day's entrance to the park?

Question 2

Investment in human capital implies:
 a. investment on machines, technological development, and equipments.
  b. expenses on education.
  c. expenses on paying interest for hiring real capital.
  d. expenses on the purchase of land.
  e. profit of the entrepreneurs.



brittanywood

  • Sr. Member
  • ****
  • Posts: 355
Answer to Question 1

The one-day pass average cost is 37 . The average cost per day of the two-day pass is 21 . The marginal cost of the second day is 5 . Sea World knows that due to diminishing marginal utility, the value of the first day's visit is high, but the second day is much lower. So in order to entice people to visit for a second day and increase Sea World revenues, the price reflects the decrease in value to individuals.

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

For a complete list of videos, visit our video library