Multiple Choice
The demand for health club services is Q = 350 - 2P and the marginal cost of providing these services is MC = 110 + 2Q.If a two-part tariff pricing system is used,what is the optimal price and quantity combination?
A) P = 52 and Q = 240.
B) P = 199 and Q = 52.
C) P = 26 and Q = 162.
D) P = 162 and Q = 26.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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