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You are the manager of a golf course. For simplicity assume that you only have two potential customers a high demand customer whose inverse demand

You are the manager of a golf course. For simplicity assume that you only have two potential customers a high demand customer whose inverse demand for golf services is given by P = 10 0.5Q and a low demand customer whose inverse demand for golf services is given by P = 8 0.5Q. Suppose the marginal cost to the golf course of each round of golf is zero. Suppose you have to charge both players the same two-part pricing strategy. Which of the following pricing strategies will yield the highest profit for you?

A.

Charge a fixed fee of 100 and a per unit fee of zero

B.

Charge a fixed fee of 64 and a per unit fee of zero

C.

Charge a fixed fee of 64 and a per unit fee of 4

D.

Charge a fixed fee of 128 and a fixed fee of zero.

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