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A fitness center has 100 prospective clients. 50 of them wish to attend the gym ten times per month, and are willing to pay $10
A fitness center has 100 prospective clients. 50 of them wish to attend the gym ten times per month, and are willing to pay $10 per visit. The other 50 want to attend 12 times per month but are only willing to pay $8 per visit. The cost to the fitness center of a single person using the equipment and space for a session is $2. Which two-part tariff scheme will result in the highest profits for the fitness center? Charge a monthly fee of $20, and $8 per visit. Charge no monthly fee, and $8 per visit. Charge a monthly fee of $72, and $2 per visit
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