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Suppose a town has just one gym that acts as a monopolist. All potential gym customers are identical, and their monthly demand for gym visits
Suppose a town has just one gym that acts as a monopolist. All potential gym customers are identical, and their monthly demand for gym visits is: p = 20 2q where p is price per visit and q is number of visits per month. The gym has a constant marginal cost of $2 per visit. Find the optimal two-part tariff to charge each customer. Price per visit: [ Select ] ["$200", "$18", "$20", "$11", "$2"] Monthly Membership Fee: [ Select ] ["$40.5", "$200", "$162", "$11", "$2"]
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