3.3 Assume that the demand for a round of golf at a premier club is Q =...
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3.3 Assume that the demand for a round of golf at a premier club is Q = 150 - P, so the marginal revenue is MR = 150 - 2Q, where P is the price per round (the greens fee) and Q is the number of rounds. Further, suppose that all players have this same demand. With a constant marginal cost of $10, what are the firm’s price, quantity, and economic profit if the managers maximize profit by setting a single price? What are the firm’s prices, quantity, and economic profit if the managers maximize profit by using two-part pricing?
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