owner has commissioned a market study that estimates the average customer’s monthly demand curve for playing 18-hole golf game  to be                Q=50 – 0.5P,   where Q stands for the number of 18-hole golf game, and P is the green fee.  The marginal cost is given by MC=20.    (1) Under two-part pricing strategy, what is the optimal amount of green fee to charge for one round of 18-hole golf game?   (2) Under two-part pricing strategy, what is the optimal amount of membership due?   (3) Under two-part pricing strategy, what is the size of the profit

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A golf cub’s owner has commissioned a market study that estimates the average customer’s monthly demand curve for playing 18-hole golf game  to be

               Q=50 – 0.5P,

 

where Q stands for the number of 18-hole golf game, and P is the green fee.  The marginal cost is given by MC=20. 

 

(1) Under two-part pricing strategy, what is the optimal amount of green fee to charge for one round of 18-hole golf game?

 

(2) Under two-part pricing strategy, what is the optimal amount of membership due?

 

(3) Under two-part pricing strategy, what is the size of the profit obtained from the average customer?  

 

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