Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thank you for the hard work, much appreciated! Question 3: A local golf course's hired-gun econometrician has determined that there are two types of golfers,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Thank you for the hard work, much appreciated!

Question 3: A local golf course's hired-gun econometrician has determined that there are two types of golfers, frequent and infrequent. Frequent golfers' annual demand for rounds of golf is given by QF=24103P where P is the price of a round of golf. In contrast, infrequent golfers' annual demand for rounds of golf is given by QI=10101P. The marginal and average total cost of providing a round of golf is $20. It will be easier if you leave your answers for the marginal revenue equations as fractions. Use negative signs where appropriate. Unless otherwise stated, round answers the the nearest one-hundredth place (0.01). a. For the frequent golfer: Question 21 1 pts What is the profit maximizing quantity of rounds? Question 22 1 pts What is the profit maximizing price? How much profit is made on the frequent golfer? b. For the infrequent golfer: Question 24 What is the profit maximizing quantity of rounds? Question 25 What is the profit maximizing price? How much profit is made on the infrequent golfer? c. Suppose the golf course wants to use second-degree price discrimination (quantity discounts). Question 27 What price should it charge for a single round of golf? Question 28 What price should be charged for the discounted plan? What is the minimum number of rounds that need to be purchased for the discounted plan? Question 3: A local golf course's hired-gun econometrician has determined that there are two types of golfers, frequent and infrequent. Frequent golfers' annual demand for rounds of golf is given by QF=24103P where P is the price of a round of golf. In contrast, infrequent golfers' annual demand for rounds of golf is given by QI=10101P. The marginal and average total cost of providing a round of golf is $20. It will be easier if you leave your answers for the marginal revenue equations as fractions. Use negative signs where appropriate. Unless otherwise stated, round answers the the nearest one-hundredth place (0.01). a. For the frequent golfer: Question 21 1 pts What is the profit maximizing quantity of rounds? Question 22 1 pts What is the profit maximizing price? How much profit is made on the frequent golfer? b. For the infrequent golfer: Question 24 What is the profit maximizing quantity of rounds? Question 25 What is the profit maximizing price? How much profit is made on the infrequent golfer? c. Suppose the golf course wants to use second-degree price discrimination (quantity discounts). Question 27 What price should it charge for a single round of golf? Question 28 What price should be charged for the discounted plan? What is the minimum number of rounds that need to be purchased for the discounted plan

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_2

Step: 3

blur-text-image_3

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

Principles Of Housing Finance Reform

Authors: Susan M. Wachter, Joseph Tracy

1st Edition

0812248627, 978-0812248623

More Books

Students also viewed these Finance questions