The demand for country club visits is given by: P = 100 - Q where Q is the number of

visits per year and P is the price per visit. Marginal cost is a constant $10 per visit.

a) What price will the country club set per visit? How many visits will there be? What are the country club's profits?

b) Suppose instead the country club uses a two-part tariff (an annual membership fee and a per visit charge). What is the price per visit? How many visits are there? What is the annual membership fee? What are total profits? Explain briefly.