A profit-maximizing skeet (competitive clay pigeon shooting) club segments its market. It charges juniors $4 per round based on their price elasticity of demand of -2.0. Its adult shooters have a price elasticity of demand of -1.4. The marginal cost per round does not vary by the shooter's age. What price does the skeet club charge adult shooters?
A) $7
B) $8
C) $6
D) $5.75
Correct Answer:
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