Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions