Solution-Charge for an annual membership

Charge for an annual membership

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Reference no: EM131386173

A local video store estimates its average customer's demand per year is Q = 7 - 2P , and it knows the marginal cost of each rental is $0.5. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy? Show work, please.

(A) $9

(B) $10

(D) $12

Reference no: EM131386173

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Charge for an annual membership

Reference no: EM131386173

Reference no: EM131386173

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