You were just hired by a struggling Country Club to help turn around the business and get it back to profitability. The business has been experiencing many months of losses which, according to the owners, is a probable consequence of an outdated membership pricing strategy. The owners asked you to look at the following economic data from a market research firm, which is split between three local groups: Retired Community, Students from a local University, and Professionals. Relative Size Professionals 60% Retired 30% Students 10% Table 1: Demographics of potential customers and Professionals Retired Students Racket Club 100 - 2Q 50 - 2Q 50 - 5Q Golf Course 200 - 4Q 250 - 3Q 100 - 4Q Pool 50 - Q 150 - 2Q 50 - 2Q General Amenities 50 - Q 100 - Q 10 - Q Table 2: Annual Inverse Demand Functions ($) Note that Q, in this case, represents the number of days a particular customer will use the relevant service per year. The corresponding Marginal Revenue curves are the following: Professionals Retired Students Racket Club 100 - 4Q 50 - 4Q 50 - 10Q Golf Course 200 - 8Q 250 - 6Q 100 - 8Q Pool 50 - 2Q 150 - 4Q 50 - 4Q General Amenities 50 - 2Q 100 - 2Q 10 -2Q Table 3: Marginal Revenue Functions ($) Additionally, you determined that the costs for each of the categories above are split between the fixed costs of operating each part of the business and a Marginal Cost for servicing customer as shown below:Marginal Cost [13} Racket Club 0 Golf Course 40 Pool 0 General Amenities 1 0 Table 4: Marginal Cost ($3 After analyzing the data above and discussing the objectives with the rm owners, you learned that they would like for you to come up with a pncing strategy incorporating some or all of the following charactenstics: - Membership Plan (annual) - Daily passes a Weekend passes (3 days) - Monthly passes (30 days) The owners believe that a new pricing strategy should be enough to bn'ng the Club back to protability, especially since they are the only Country Club in town and there are not many venues oering comparable pools and spaces for racket sports. Question 1: What kind of (economic) market discussed in class better describes the environment this Country Club is in? Question 2: What is your recommended pricing strategy assuming no capacity constraints? Note that you probably want to incorporate and combine several of the pricing strategies we discussed in class to arrive at an optimal strategy. Make whatever assumptions you deem necessary to support your argument. Question 3: Does your answer change if you think you may be at capacity with your new plan? Explain