You currently serve 3,000 non-HMO patients and 1,000 HMO members. Your fixed costs are $50,000, and your marginal costis $50. If the price elasticity of demand for non-HMO patients is -3 and the price elasticity of demand for HMO members -6,which of the following statements is true about the prices you should charge?

Select one:

a.

You would maximize profits by charging non-HMO patients $75 and HMO members $60.

b.

You would maximize profits by charging them the same price, $64.29.

c.

You would maximize profits by charging them $50.

d.

None of these are true statements.