Joe in Question 5.3 marries Susan, who is also an enthusiastic golfer. Susan wants to join the
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Joe in Question 5.3 marries Susan, who is also an enthusiastic golfer. Susan wants to join the Northlands Club. The manager believes that Susan’s inverse demand curve is p = 100 - 2q. The manager has a policy of offering each member of a married couple the same two-part prices, so he offers them both a new deal. What two-part pricing deal maximizes the club’s profit? Will this new pricing have a higher or lower access fee and per unit fee than in Joe’s original deal? How much more would the club make if it charges Susan and Joe separate prices? M
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Microeconomics Theory And Applications With Calculus
ISBN: 9780133019933
3rd Edition
Authors: Jeffrey M. Perloff
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