Suppose that in Figure 20.1 the cost of the swim club is F = $350,000 and the

Question:

Suppose that in Figure 20.1 the cost of the swim club is F = $350,000 and the marginal cost is MC = 100n2.where n is club membership.
a. Compute the optimal membership size for the club.
b. Suppose that the marginal cost rises to MC = 200n2 Explain the impact on the optimal membership.