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When you become a manager of a company where Covid-19 victims are isolated, you have to set the best price for renting a place to
When you become a manager of a company where Covid-19 victims are isolated, you have to set the best price for renting a place to isolate Covid-19 victims. Assume that the marginal cost of the isolation site is zero. The monthly demand for your alleged isolation place is as follows: Q=100-2P Where P is the monthly rental price, and Q is the number of isolation rooms rented per month. a. What price will you charge? b. How many isolation rooms are rented per month at that price level? c. Explain why you chose that price level?
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