Question
When you become a manager of a company where Covid-19 victims are isolated, you must set the best price for renting an isolation place for
When you become a manager of a company where Covid-19 victims are isolated, you must set the best price for renting an isolation place for Covid-19 victims. Assume that the cost the marginal cost of the isolation site is zero. Monthly request for isolation you suspect are 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?
note: deadline in 2-3 hours
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