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6. Fill in the blanks (1 mark) Continue from the Fitness-First gym example in the lecture note, whereby each high-income consumer has inverse demand Ph = 16 - qh and each low-income consumer has inverse demand P1 - 12 - q1. The marginal cost per-visit is 4, and there is no fixed cost. Recall we already knew that the two constraints for second-degree price discrimination give TL = 12q1 - - and TH = 16qH - 4q1 - 2 Suppose there are 20 high-income consumers and NV 2 1 low-income consumers, what is the lowest possible integer value of NV such that it is still weakly more profitable for the gym to serve both low-income and high-income consumers (relative to serving high-income consumers only)? The answer is: 1 Enter the correct answer below. Please enter a number for this text box

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