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Pearl Hamill is the owner/operator of a tanning salon. She is considering four prices for a weekly tanning pass. Her estimate of price and quantity
Pearl Hamill is the owner/operator of a tanning salon. She is considering four prices for a weekly tanning pass. Her estimate of price and quantity demanded are:
Price Quantity Demanded
$12.40 320
$11.70 350
$10.00 380
$9.50 390
Monthly costs of providing the tanning service include $1,800 of fixed costs and variable costs of $2.50 per service.
Price Profit/(loss)
$12.40 $
$11.70 $
$10.00 $
$9.50 $
A price of $ yields the largest monthly profit.
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