You Have Just Been Hired as Manager of a New

question 20

Essay

You have just been hired as manager of a new health spa in Retirement Village,Florida.The owner has commissioned a market study that estimates the average customer's monthly demand curve for visiting the health spa to be Q^d = 50 - 0.25P.The cost of operating is C(Q)= 3Q,where Q is the number of visits.The owner has been charging a $20 per month membership fee and a $5 per visit fee.Part of your salary is 10 percent of the monthly profits.Suggest a pricing strategy that will increase your salary.

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Definitions:

PKa Values

Quantitative measures that describe the acidity of a compound, representing the negative log of the acid dissociation constant (Ka).

Equilibrium Constant

A numerical value that represents the ratio of concentrations of products to reactants at equilibrium in a reversible chemical reaction.

% Conversion

A measure of the efficiency of a chemical reaction, indicating the percentage of reactant that has been converted into product.

ΔG°

The standard Gibbs free energy change, a thermodynamic property indicating the spontaneity of a reaction at standard conditions.