Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sentence 1: The managers of a tennis club on a tropical island must make decisions about the fixed fee for entering the club and the

image text in transcribed

image text in transcribed
Sentence 1: The managers of a tennis club on a tropical island must make decisions about the fixed fee for entering the club and the prices per hour of use of a tennis court. There are two types of players: "professionals" with demand Q1: 5 -P, and "amateurs", with demand 02: 3 -1:'2P. 0 represents the number of court hours per week and P the price per court hour for each player. There are approximately the same number of players of each type: 11000. The xed costs of running the club are estimated at 5.000 per week. while the variable costs of using the courts are negligible. {There is no limitation of tracks. nor deterioration of them due to their use). The two-part fee that is decided must obviously be unique for all players (unless you present some convincing argument for the possibility of applying different fees and different prices per court hour). 1.- Determine the rate in two parts to apply if you want to make a selective club: that attracts only professionals. 2. Decide whether or not you are interested in attracting amateurs. 3'- If there were 3,000 professionals and only 1,000 amateurs would it change the decision to be made

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

Recommended Textbook for

Modern Principles Microeconomics

Authors: Tyler Cowen, Alex Tabarrok

4th Edition

1319098762, 978-1319098766

More Books

Students also viewed these Economics questions

Question

What is the persons job (e.g., professor, student, clinician)?

Answered: 1 week ago

Question

3. What values would you say are your core values?

Answered: 1 week ago