Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Simple Pricing versus Two-Part Tori]?r In Oak Harbor, the demand for yoga classes from the typical consumer has been estimated as Qd(p) = 8

image text in transcribed
image text in transcribed
2. Simple Pricing versus Two-Part Tori]?r In Oak Harbor, the demand for yoga classes from the typical consumer has been estimated as Qd(p) = 8 (1/3)p, where Q is the number of yoga classes per month and p is the price of a class. The only yoga club in town is Kara's. Her cost of operating the yoga club is a fixed $2,400 per month, independently of how many people attend her classes. a) Find Kara's optimal price per yoga class if she were to charge no club membership fee. b) Find Kara's optimal pricing strategy if she can choose to charge a price per yoga class, a monthly club membership fee (entitling the member to unlimited classes), or some combination of both. Explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Advertising

Authors: William F Arens

16th Edition

1260735419, 9781260735413

More Books

Students also viewed these Economics questions

Question

350% of what amount is $1000?

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago