Question
The per-person demand for the only bowling alley in Malibu is p=40-q, where q is the number of games. This bowling alley has marginal costs
The per-person demand for the only bowling alley in Malibu is p=40-q, where q is the number of games. This bowling alley has marginal costs of 20 and uses a two-part tariff pricing scheme featuring a flat fee, f, for you to rent their shoes (required of every participant) plus a per-game price of p. What price and fee should the bowling alley charge?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
