Joe in Question 5.3 marries Susan, who is also an enthusiastic golfer. Susan wants to join the Northlands Club. The manager believes that Susan’s inverse demand function is p = 100 – 2q. The manager has a policy of offering each member of a married couple the same two- part prices, so he offers them both a new deal. What two- part pricing deal maximizes the club’s profit? Will this new pricing have a higher or lower access fee and per- unit fee than in Joe’s original deal? How much more would the club make if it charged Susan and Joe separate prices?

  • CreatedNovember 13, 2014
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