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The table below sh ows the demand for gym membership at a local university by students and staff. The university gym is able to undertake
The table below sh ows the demand for gym membership at a local university by students and staff. The university gym is able to undertake third-degree price discrimination. The fixed cost of supplying gym services at the by the univeristy is $120, and the marginal cost of supplying the membership to an additional student/staff is $0. Quantity Demanded Price Students Staff $50 0 1 $40 2 2 $30 4 3 $20 6 4 $10 8 5 $0 10 6 Which of the following is/are correct? Group of answer choices Students should be charged $40, and staff should be charged $50. The university gym will not be able to cover the total costs in the long run and therefore it should not operate. Students should be charged $20 and staff should be charged $30. Both (b) and (c) are correct
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