Explore BrainMass

Explore BrainMass

    Two part pricing strategy for a store

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    need assistance

    A store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?
    A. $20
    B. $32
    C. $40
    D. $64

    Please show calculations

    © BrainMass Inc. brainmass.com October 9, 2019, 9:42 pm ad1c9bdddf

    Solution Summary

    A two part pricing strategy is featured.