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 €
You are the manager of a golf course. For simplicity assume that you only have two potential customers – a high
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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