You are the operator of a ski hill that draws its customers primarily from two metropolitan areas that lie varying distances (with corresponding proportionate travel times) from your facility. Assume there is a $30 entrance fee (lift ticket), Gas/depreciation for autos is valued at 25 cents per km, time is valued at $7.50 per person hour, travel is at 100 km per hour, an average of 2.5 persons travel per car.
ZONE OF POPULATION ANNUAL ONE-WAY TRIP DISTANCE
ORIGIN
A 400,000 40,000 50 KM
B 800,000 60,000 100 KM
Using the example reviewed in class as a guide, calculate the total dollar value of the park derived from its current users. Clearly show your steps and your calculations. Make a sketch which illustrates your solution and label the relevant price/quantities/areas.