6. You are the manager of a gym, and you have to decide how many customers...

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6. You are the manager of a gym, and you have to decide how many customers to admit cach hour. Assume that cach customer stays exactly one hour. Custommers are costly to admit because they inflict wear and tear on the exercise equipment. Moreover, cach additional customer generates more wear and tear than the customer before. As a result, the gym faces increasing marginal cost. The accompanying table shows the marginal costs associated with each number of customers per hour. Quantity of customers per hour Marginal cost of customer S14.00 14.50 15.00 15.50 16.00 16.50 17.00 a. Suppose that each customer pays S15.25 for a one-hour workout. Use the profit- maximizinE principle of marginal analysis to find the optimal number of custom- ers that you should admit per hour. b. You increase the price of a onc-hour workout to S16.25. What is the optimal number of customers per hour that you should admit now? 6. You are the manager of a gym, and you have to decide how many customers to admit cach hour. Assume that cach customer stays exactly one hour. Custommers are costly to admit because they inflict wear and tear on the exercise equipment. Moreover, cach additional customer generates more wear and tear than the customer before. As a result, the gym faces increasing marginal cost. The accompanying table shows the marginal costs associated with each number of customers per hour. Quantity of customers per hour Marginal cost of customer S14.00 14.50 15.00 15.50 16.00 16.50 17.00 a. Suppose that each customer pays S15.25 for a one-hour workout. Use the profit- maximizinE principle of marginal analysis to find the optimal number of custom- ers that you should admit per hour. b. You increase the price of a onc-hour workout to S16.25. What is the optimal number of customers per hour that you should admit now?

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a The optimal number of customers that we should admit per hour is the quantities whe... View the full answer