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.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 9SQP

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