Suppose That a Night Club's Customers All Have the Same

question 80

Multiple Choice

Suppose that a night club's customers all have the same inverse demand curve for drinks, P = 5 - Q, where P is the price per drink and Q is the number of drinks. The marginal cost of a drink is $1. With a two-part tariff pricing strategy, how much do customers pay to get into the nightclub?

• A) $5
• B) $10
• C) $8
• D) $6

---

Definitions:

Survey

A research method used for collecting data from respondents through structured questionnaires or interviews to gather information about a specific topic.

Finite Population Correction Factor

A factor applied to the standard error or variance formulas when sampling from a finite population, reducing the sample variance or standard error to account for the finite population size.

Tractor Dealership

A business establishment that sells and sometimes services tractors and related machinery.

Audit

An official inspection of an individual's or organization's accounts, typically by an independent body.