Agnieszka is a CEO of an opera house called the ‘Agnieszka’s Opera House”. It is the only opera house in the region, giving Agnieszka’s Opera House a monopoly position in the market. Each customer’s demand curve for shows per month is given by the following: P = 100 – 6Q. The marginal cost of each ticket sold is $40. Agnieszka is considering a new pricing for her business: a membership fee that allows people to purchase tickets to the shows after which they can purchase as many opera tickets as they wish for $40 each. If Agnieszka wants to maximize profits, what is the optimal membership fee that she should charge?

Answer rating: 100% (QA)

Answer P 46 Given that P 100 6Q Total Revenue TR P Q 100 6Q Q 100Q 6... View the full answer