Question
FlyExclusive is a company that offers memberships for access to chartered private jets. They are trying to decide the optimal price for their membership fee
FlyExclusive is a company that offers memberships for access to chartered private jets. They are trying to decide the optimal price for their membership fee and are considering using a two-part tariff. They estimate consumer demand to be: Q = 100 - 0.1P (or P = 1000 - 10Q), where Q is the number of charted jet flights per year and P is the price per flight. If the marginal cost of serving each customer is $100 per flight, what is the optimal two-part tariff that FlyExclusive should charge?
Group of answer choices
a) Membership fee = $50,000; P = $100 for each flight.
b) Membership fee = $40,050; P = $100 for each flight.
c) Membership fee = $50,000; P = $0 for each flight.
d) P = $550 for each flight, no membership fee.
e) Membership Fee = $50,000, P = $550 for each flight.
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