Home » From practice question below: B yoga studio if the only cafe in the campus.

From practice question below: B yoga studio if the only cafe in the campus.

From practice question below:

B yoga studio if the only cafe in the campus. Being a monopoly, the owner wants to serve only students or professors

  • B yoga studio correctly knows that there are 1,000 students and 1,000 professors who might come if the price is right
  • Each student has the demand of Qs=5P-30
  • Each professor has the demand of Qp = 10P-60

where Qs and Qp are the number of visits to the gym per semester. P denotes the highest fee a customer is willing to pay per visit.

B yoga studio has enough capacity to serve all customers. The fix costs are sunk. Marginal cost per visit is constant $2 and B cafe is a profit maximizer

B yoga has been separately charging students and professors until recently. However, recently, professors were caught using fake student ID to save money. o B Yoga decided to charge the same membership fee of $50 and per visit fee of $2 regardless of their types

Can you please share how to calculate profits B Yoga earn per semester? How to draw numerical and graphical illustration

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