Academia Nuts, Inc Is an Indoor Play Area Designed Especially

Multiple Choice

Academia Nuts, Inc is an indoor play area designed especially for academicians to work off some off the frustrations of having to deal with academic bureaucracies. You can come and smash a car with sledge hammers, dunk people who look like ivory tower intellectuals into vats of water and perform other activities useful in achieving Nirvana. Management estimates that the typical customer who likes to destroy things enough to want a membership card has an annual demand curve represented by the equation
Q = 50 - .25P
P = the price charged per visit
Q = the number of times per year a person will visit.
MC = $80.00 Based on the foregoing demand curve, to maximize profit contribution, what should be the price of the annual membership card?

A) $500
B) $800
C) $1300
D) $1800
E) $2500