Three consumers have personal tastes for drinks at the Crunkleton. The Crunkleton Cocktail Bar charges a membership fee to enter the bar and the drinks are $15 a piece (MC=15). The three types of consumers are undergrads, MBA students, and alumni. Undergrads have a demand of P=16-QU , MBA students have a demand of P= 22-0.2Qm , and alumni have a demand of P=22-0.5QA . Assuming there are equal number of undergrads, MBAs, and alumni, and costs are only variable so C=15Q. d) What is the profit if the bar charges a fee that encourages only MBA to go to the bar? Which fee will the bar choose
Three consumers have personal tastes for drinks at the Crunkleton. The Crunkleton Cocktail Bar charges a membership fee to enter the bar and the drinks are $15 a piece (MC=15). The three types of consumers are undergrads, MBA students, and alumni. Undergrads have a demand of P=16-QU , MBA students have a demand of P= 22-0.2Qm , and alumni have a demand of P=22-0.5QA . Assuming there are equal number of undergrads, MBAs, and alumni, and costs are only variable so C=15Q. d) What is the profit if the bar charges a fee that encourages only MBA to go to the bar? Which fee will the bar choose
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 8QFR
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- Three consumers have personal tastes for drinks at the Crunkleton. The Crunkleton Cocktail Bar charges a membership fee to enter the bar and the drinks are $15 a piece (MC=15). The three types of consumers are undergrads, MBA students, and alumni. Undergrads have a demand of P=16-QU , MBA students have a demand of P= 22-0.2Qm , and alumni have a demand of P=22-0.5QA . Assuming there are equal number of undergrads, MBAs, and alumni, and costs are only variable so C=15Q.
d) What is the profit if the bar charges a fee that encourages only MBA to go to the bar? Which fee will the bar choose to maximize profits (MBA, undergrads, or alumni)?
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