2. Suppose the demand and marginal cost at a local golf course is given by: P = 200 - 4Q MC = $8. Assume there are no fixed costs and that the above demand and marginal cost are identical for each golfer. a. If the golf course uses a two-part tariff (price and a fixed fee) what is the optimal price and fixed fee? What is the golf course's profit?

2. Suppose the demand and marginal cost at a local golf course is given by: P = 200 - 4Q MC = $8. Assume there are no fixed costs and that the above demand and marginal cost are identical for each golfer. a. If the golf course uses a two-part tariff (price and a fixed fee) what is the optimal price and fixed fee? What is the golf course's profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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