Access to certain golf courses such as Golf de Morfontaine, north of Paris, France, is restricted to

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Access to certain golf courses such as Golf de Morfontaine, north of Paris, France, is restricted to members and their guests. In addition to the membership fee, there is a charge (greens fee) to play each round of golf on private golf courses. Suppose the golf course sells memberships to two groups of 196 golfers each. The demand curve for the first group is \(Q_{1}=1,860-p\) and for the second group is \(Q_{2}=1,600-p\), where \(Q_{1}\) and \(Q_{2}\) are rounds per week and \(p\) is euros per round. The membership fee, \(\delta\), and the per-round price, \(p\), is the same for each golfer, the marginal cost of a round of golf is \(M C=€ 70\), and there are no fixed costs. What is the optimal price per round and the membership fee? How many rounds of golf does each group play? What is the consumer surplus for each?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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