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November 28, 2014

Homework Help: Managerial Economics

Posted by Ronald on Tuesday, March 20, 2012 at 10:59pm.

The demand for health club services is Q = 350 − 2P and the marginal cost of providing these services is MC = 110 + 2Q. If a two-part tariff pricing system is used, what is the optimal price and quantity combination?

a.P = 52 and Q = 240
b.P = 199 and Q = 52
c.P = 26 and Q = 162
d.P = 162 and Q = 26
e.none of the above

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