End of Appendix Problem A university's students have demand for credit hours given by q = 30 -0.04p, where p is the price per credit hour. a. If the university charges only one price for credit hours, irrespective of the number of credit hours a student enrolls for, what is the price per credit hour that would maximize revenue for the university?
End of Appendix Problem A university's students have demand for credit hours given by q = 30 -0.04p, where p is the price per credit hour. a. If the university charges only one price for credit hours, irrespective of the number of credit hours a student enrolls for, what is the price per credit hour that would maximize revenue for the university?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve economic question
![The Calculus of Price Strategies - End of Appendix Problem
A university's students have demand for credit hours given by q = 30 -0.04p, where p is the price per credit hour.
a. If the university charges only one price for credit hours,
irrespective of the number of credit hours a student enrolls
p=
for, what is the price per credit hour that would maximize
revenue for the university?
b. If the university adopts a two-tier pricing structure, what pricing structure would maximize revenue for the university?
P1 =
P2 =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6aa7cd5-444d-4d68-8a3e-2e2ca7745aaa%2Fb1c9ed32-0727-4d7e-8dbe-2b000cf537c6%2F7fnk0o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Calculus of Price Strategies - End of Appendix Problem
A university's students have demand for credit hours given by q = 30 -0.04p, where p is the price per credit hour.
a. If the university charges only one price for credit hours,
irrespective of the number of credit hours a student enrolls
p=
for, what is the price per credit hour that would maximize
revenue for the university?
b. If the university adopts a two-tier pricing structure, what pricing structure would maximize revenue for the university?
P1 =
P2 =
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