Your golf club offers you two alternatives:

a) Pay 40 euros per course.

b) Pay 200 euros fixed fee and then 20 euros per course.

You have 1000 euros to spend on leisure activities. In scenario a), you want to play 15

courses of golf; in scenario b), you want to play 25 courses. Suppose the unit price of your other leisure activity is 10 euros.

1) Illustrate the budget constraints for the two scenarios.

2) Logically, would you prefer to pay the fixed fee?

3) Under what scenario does the golf club make most revenue?