Question: Question is listed as the attached screenshot. (10 points = 8 points for calculation + 2 points for explanation) You have just been hired as

Question is listed as the attached screenshot.

(10 points = 8 points for calculation + 2 points for explanation) You have just been hired as manager of a new health spa in Retirement Village, Florida. Part of your salary is a fixed percentage of the monthly profits. The average customer's monthly demand curve for visiting the health spa is Q = 100 0.5P. The cost of operating is C(Q) = lOQ, where Q is the number of visits. The owner has been charging a $2000 per month membership fee and a $5 per visit fee. Is the owner's current pricing strategy profit-maximizing? If not, suggest a pricing strategy that will increase the owner's profit and as well as your salary. Show all the necessary steps of calculation to earn full points. (hint: it's a two-part tariff question)

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