Posted by **<3** on Tuesday, April 19, 2011 at 11:08pm.

Slim city is a town resided by slim people, with no health club in town. LA Fatness has estimated that the annual demand for their Fatness Club in this town to be Q = 160 - P. Every Club member has a marginal cost of $40, and the annual fixed cost of the business is $500 (assume a linear cost function).

LA Fatness starts the first Fatness Club in town. What is the optimum price & membership quantity?

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