Explain the optimal price and quantity combination

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The demand for health club services is Q = 350 − 2P and the marginal cost of providing these services is MC = 110 + 2Q. If a two-part tariff pricing system is used, what is the optimal price and quantity combination? 

a.P = 52 and Q = 240 
b.P = 199 and Q = 52 
c.P = 26 and Q = 162 
d.P = 162 and Q = 26 
e.none of the above

Reference no: EM13199312

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