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Figure 16-2 Watanabe Sensei Operates the Only Martial Arts

Question 117

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Figure 16-2 Figure 16-2   Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve. -Refer to Figure 16-2.Sensei's friend,Marcel,suggests that he charge a one-time membership fee to use the martial arts school,in addition to a per-class charge.Suppose Sensei charges the monopoly price for each class and also imposes a one-time membership fee.What is the maximum amount of revenue from the membership fee he can collect from all his customers? A) an amount equal to the area A + B B) an amount equal to the area E + F C) an amount equal to the area H + G D) an amount equal to the area A + C + H Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve.
-Refer to Figure 16-2.Sensei's friend,Marcel,suggests that he charge a one-time membership fee to use the martial arts school,in addition to a per-class charge.Suppose Sensei charges the monopoly price for each class and also imposes a one-time membership fee.What is the maximum amount of revenue from the membership fee he can collect from all his customers?


A) an amount equal to the area A + B
B) an amount equal to the area E + F
C) an amount equal to the area H + G
D) an amount equal to the area A + C + H

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