Each consumer has the following demand for annual visits to Planet Fitness: Q = 100 - P, where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer? O Annual fee = $4,050; P= $10 for each visit O Annual fee = $5,000; P= $10 for each visit. O Annual fee = $4,050; P= $0 for each visit. Annual fee = $5,000; P= $0 for each visit.

Each consumer has the following demand for annual visits to Planet Fitness: Q = 100 - P, where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer? O Annual fee = $4,050; P= $10 for each visit O Annual fee = $5,000; P= $10 for each visit. O Annual fee = $4,050; P= $0 for each visit. Annual fee = $5,000; P= $0 for each visit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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