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Use the following information to answer the next FOURquestions: Consider a golf course that has a local monopoly in providing 18-hole rounds of golf. It
Use the following information to answer the next FOURquestions: Consider a golf course that has a local monopoly in providing 18-hole rounds of golf. It operates with a marginal cost of MC=10. Let the market be composed of identical golfers, each having a demand for playing golf given by P=100-2Q, where Q represents the number of 18-hole rounds of golf in a given month. The golf course would like to block price with two blocks. 1. What is the profit-maximizing price per round of golf for the first block? $ _____________ 2. What is the profit-maximizing price per round of golf for the second block? $ ____________ 3. Suppose the golf course implements its block pricing policy by offering golfers the choice of either paying the first block price for each round of golf that they play or purchasing a golf package. What profit-maximizing price will the golf course charge for the golf package? $ _______________ 4. How many rounds of golf will be included in the golf package? _______________
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