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Home / Questions / Managerial Economics: Calculating optimal price and number of lockers rented As manager of Citywide

Managerial Economics: Calculating optimal price and number of lockers rented As manager of Citywide

Managerial Economics: Calculating optimal price and number
of lockers rented

As manager of Citywide Racquet Club, you must determine the
best price to charge for locker rentals Assume that the (marginal) cost of
providing lockers is 0

 

The monthly demand for lockers is estimated to be: Q= 100-2P
where P is the monthly rental price and Q is the number of lockers rented per
month

 

a What price would you charge?

b How many lockers are rented monthly at this price?

c Explain why you chose this price

 

Apr 25 2020 View more View Less

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