Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A local gym plans to use third-degree price discrimination to set its family and corporate rates. The demand for family memberships is = 246 5

A local gym plans to use third-degree price discrimination to set its family and corporate rates. The demand for family memberships is = 246 5 and the demand for corporate memberships is = 517.5 12.5. The gym's cost is = 3,000 + 2.5.

a How many memberships of each will the firm sale under third-degree price discrimination?

b What price will the firm charge for each type of memberships under third-degree price discrimination?

c What profits will the firm make in total under third-degree price discrimination?

d If the law goes not allow the gym to price discriminate, what profits will the firm make in total under uniform pricing (hint: add the original demands to find the total demand)?

Pls help a b c d correct

Don't answer by pen paper

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

Step: 3

blur-text-image

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

Global Marketing

Authors: Johny K Johansson

4th Edition

0072961805, 9780072961805

More Books

Students also viewed these Economics questions

Question

=+b. Construct a histogram and comment on its shape.

Answered: 1 week ago

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago