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3. (10 Points) You have a bicycle rental business which has 300 adult bikes and 200 children's bikes. The bikes have a fixed cost of
3. (10 Points) You have a bicycle rental business which has 300 adult bikes and 200 children's bikes. The bikes have a fixed cost of $2,000 to maintain, but no marginal cost to rent them out. Demand is below. Price/hour Adults Children $10 0 0 100 200 0 300 300 0 300 100 300 200 300 200 300 200 a. If you, by law, can only charge one price, what would it be, and to whom? b. If you could charge adults and children different prices, what would be the prices to each group
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