E1 (a) If the golf course wishes to implement a two-part pricing model, what membership fee will maximize revenue for the golf course? Please show your calculations. (b) How many rounds of golf will Joe play per year (calculate the value of Q*)? Please explain. (c) Would someone who just occasionally plays golf (perhaps 1 or 2 rounds once every 2 months) prefer two-part pricing as given above, or would they prefer to pay a price of $100 per round without any membership fee? Please explain.
E1 (a) If the golf course wishes to implement a two-part pricing model, what membership fee will maximize revenue for the golf course? Please show your calculations. (b) How many rounds of golf will Joe play per year (calculate the value of Q*)? Please explain. (c) Would someone who just occasionally plays golf (perhaps 1 or 2 rounds once every 2 months) prefer two-part pricing as given above, or would they prefer to pay a price of $100 per round without any membership fee? Please explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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E1
(a) If the golf course wishes to implement a two-part pricing model, what membership fee will maximize revenue for the golf course? Please show your calculations.
(b) How many rounds of golf will Joe play per year (calculate the value of Q*)? Please explain.
(c) Would someone who just occasionally plays golf (perhaps 1 or 2 rounds once every 2 months) prefer two-part pricing as given above, or would they prefer to pay a
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