[Q: 12-6995857] A golf club has determined that its local community has two broad groups of consumers: casual golfers and serious golfers. The golf club plans to charge golfers both a monthly membership fee (F) and a price (P) for each round of golf played. The club has estimated the following details for each consumer group, where P represents the price per round of golf and Q represents the number of rounds. There are 31 serious golfers and each has a direct demand of Q, (P,) = 180 - 2P There are 65 casual golfers and each has a direct demand of Q. (P.) = 144 - 2P.. The marginal cost associated with each round is equal to $20. Ignore fixed costs. Assume that this golf club cannot price discriminate.

[Q: 12-6995857] A golf club has determined that its local community has two broad groups of consumers: casual golfers and serious golfers. The golf club plans to charge golfers both a monthly membership fee (F) and a price (P) for each round of golf played. The club has estimated the following details for each consumer group, where P represents the price per round of golf and Q represents the number of rounds. There are 31 serious golfers and each has a direct demand of Q, (P,) = 180 - 2P There are 65 casual golfers and each has a direct demand of Q. (P.) = 144 - 2P.. The marginal cost associated with each round is equal to $20. Ignore fixed costs. Assume that this golf club cannot price discriminate.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 6MC

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