Question: solve 7. Individual Problems 14-3 Suppose a karate dojo has determined that students come only once per month if charged $50 per lesson, four times
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7. Individual Problems 14-3 Suppose a karate dojo has determined that students come only once per month if charged $50 per lesson, four times per month (once a week) at $40 per lesson, and 20 times at $10 per lesson. Assume the marginal cost of another student attending the dojo is close to zero. Assume the dojo is only open 20 days per month. How should the dojo price its lessons? The dojo should use two-part pricing Yin order to capture a greater amount of consumer surplus to turn into profit. Specifically, the dojo should charge $10 for each lesson. The dojo should require a monthly dojo membership. If the dojo were to require a membership, then it should be equalta WwStep by Step Solution
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