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?        Annual fee = $4,050; P = $10 for each visit        Annual fee = $5,000; P = $0 for each visit.        Annual fee = $4,050; P = $0 for each visit.        Annual fee = $5,000; P = $10 for each visit.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
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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?

      
Annual fee = $4,050; P = $10 for each visit

      
Annual fee = $5,000; P = $0 for each visit.

      
Annual fee = $4,050; P = $0 for each visit.

      
Annual fee = $5,000; P = $10 for each visit.

 

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