You have just been hired as manager of a new health spa in Retirement Village,Florida.The owner has commissioned a market study that estimates the average customer's monthly demand curve for visiting the health spa to be Qd = 50 - 0.25P.The cost of operating is C(Q)= 3Q,where Q is the number of visits.The owner has been charging a $20 per month membership fee and a $5 per visit fee.Part of your salary is 10 percent of the monthly profits.Suggest a pricing strategy that will increase your salary.
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