5.4 Ricardo from Question 5.3 marries Dianelys, who also wants to join StayFit Gym. The manager believes
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5.4 Ricardo from Question 5.3 marries Dianelys, who also wants to join StayFit Gym. The manager believes that Dianelys’s inverse demand function is p = 26 - 0.04q. The manager has a policy of offering each member of a married couple the same twopart prices, so he offers them both a new deal. What two-part pricing deal maximizes the gym’s profit?
Will this new pricing have a higher or lower membership fee and per-unit fee than that in Ricardo’s original deal? How much more would the gym make if it charged Dianelys and Ricardo separate prices?
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Managerial Economics And Strategy
ISBN: 9780135640944
2nd Global Edition
Authors: Jeffrey M. Perloff, James A. Brander
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