The Demand for Health Club Services Is Q = 100

question 27

Multiple Choice

The demand for health club services is Q = 100 - 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 fixed fee?

• A) 1,555.
• B) 2,624.
• C) 1,024.
• D) 1,206.
• E) None of the above.

---

Definitions:

Aryan Religion

The religious beliefs and practices associated with the Indo-European peoples known as Aryans, precursor to major religions such as Hinduism.

Soma

In Vedic tradition, Soma is a ritual drink of importance among the early Indians, also referred to a deity associated with this drink.

Palace

A grand residence, especially the home of a head of state or some other high-ranking dignitary, royals, or bishops.

Indus Valley

The Indus Valley refers to the region in South Asia home to the Indus Valley Civilization, one of the world's earliest urban cultures, known for its advanced city planning, architecture, and writing system around 2500 BCE.