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Tina's Bar is a popular drinking establishment. Tina charges a fixed nightly cover fee to each customer to get in the door, and then the
Tina's Bar is a popular drinking establishment. Tina charges a fixed nightly cover fee to each customer to get in the door, and then the same price p for every drink. The marginal cost of making a drink is $5. Suppose she gets 50 customers per night and they all have the same nightly demand for drinks: q = 4 - 0.2p.
- What is Tina's per-customer cover charge?dollars
- What price p will she charge per drink?dollars per drink
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