Suppose you have one type of customer who comes to see your team play and that customer has a demand curve of P = $40 - Q. Also assume the marginal cost of having a person come to see your game is a constant $2. If you were to charge a two-part pricing scheme whereby you charged a PSL and then a price-per-ticket, which strategy would lead to the highest possible profit per customer? PSL = $722; P = $2 PSL = $361; P = $21 %3D PSL = $1,444; P = $21 %3D DSI - ¢361: D - ¢2
Suppose you have one type of customer who comes to see your team play and that customer has a demand curve of P = $40 - Q. Also assume the marginal cost of having a person come to see your game is a constant $2. If you were to charge a two-part pricing scheme whereby you charged a PSL and then a price-per-ticket, which strategy would lead to the highest possible profit per customer? PSL = $722; P = $2 PSL = $361; P = $21 %3D PSL = $1,444; P = $21 %3D DSI - ¢361: D - ¢2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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