As manager of City Racquet Club, you must determine the best price to charge for locker rentals. Assume that the marginal cost of providing lockers is zero. The monthly demand for lockers is estimated to be Q = 100 - 2P, where P is the monthly rental price and Q is the number of lockers rented per month.
1. What price would you charge?
2. How many lockers would you expect to rent at this price?
3. Explain how you arrived at the price you chose.