zlyzoh
zlyzoh
09.04.2021 • 
Business

Suppose the club decides that tall and short people will accept different amounts of headspace. The club (1) has the power to charge different prices to tall people and short people, and (2) knows each customer's willingness to pay. That information is below: Name Height Willingness to pay
Amelia Tall $20
Beatrice Tall $18
Charlotte Tall $16
David Short $14
Eddie Short $12
Francesca Tall $10
Genesis Short $8

Required:
Suppose the club decides to charge short people $12. To maximize profits, what price would the club charge tall people?

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