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Aunt Jane's Fitness Center is planning to utilize price discrimination to set its family and corporate rates. For a family membership, it's estimated demand curve is Qf = 984 - 20Pf For the corporate market its estimated demand curve is Qc = 2,070 - 50Pc In both equations, Q represents the quantity of members and P represents the monthly membership fee. The center's weekly total cost is TC = 12,000 + 10Q, where Q is total number of members (Qf + Qc)

a. With price discrimination, how many memberships will be sold in each market?

b. What price will Aunt Jane's charge in each market?

c. What will be the center's monthly profit?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9687197

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