# Question: As manager of Citywide Racquet Club you must determine the

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.

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.

**View Solution:**## Answer to relevant Questions

The demand curve for haircuts at Terry Bernard’s Hair Design is P = 20 – 0.20Qwhere Q is the number of cuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of ...Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + ...Oversize Transport Inc. supplies custom delivery service for very large construction equipment in the southeast region of the United States. The most common load for the specialty trucker is the Caterpillar model 740 dump ...The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units ...For the production function in exercise 1, let the price of labor be w and the price of capital be r. a. The efficient usage function for labor is L* = __________________ . b. The efficient usage function for capital is K* = ...Post your question