Question
ABC County Club is a golf club in an isolated wealthy community and accepts only females as members. There are 1,000 identical female members of
ABC County Club is a golf club in an isolated wealthy community and accepts only females as members. There are 1,000 identical female members of the club and a typical member has a yearly demand for rounds of golf expressed as: P = 150 Q , where Q is the number of rounds of golf per year at a green fee of P per round. This year, ABC has priced its annual membership fee at $7,000 and its green fee at $30 per round of golf. (Green fee includes caddie/buggy fee as well.) It costs ABC a constant $25 to provide a round of golf for each member. ABCs annual fixed cost of running the club is $1,000,000.
Suppose there are 1,000 identical male golfers whose individual yearly demand for golf rounds is known to be P = 100 Q The club was urged to change its male-discriminating policy. Assume every member should be charged the same set of membership and per-round green fees. What yearly membership and per-round green fee would ABC Golf Club have to charge to successfully exclude male golfers while trying to make as much profits as possible from the female golfers?
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