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Business, 15.08.2020 18:01 summerarellanoo

A muffin stand lets consumers choose among a menu of three pricing options: (a) a monthly subscription fee of $200 and a price per muffin of $4; (b) a monthly subscription fee of $300 and a price per muffin of $3; or (c) a monthly subscription fee of $900 and allows for unlimited amount of muffins at no additional cost. Suppose that muffins are incredibly addictive, so consumers have perfectly inelastic demand for them, up to a certain saturation point. In what range of muffins per month would that saturation point need to be for a consumer to select pricing option b

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