Cover Charges

Jazzy Blues is a local nightclub. It has a $8 cover charge to cover the costs of the live jazz bands. These acts are very popular and there are capacity crowds and a long line of people waiting outside. However, after the cost of the acts, the club still loses money. What can you surmise about the marginal revenue and marginal cost of a patron and how should the club attempt to fix its unprofitability problem?