Question: 1 . ( 3 0 points ) The typical golfer at Bushwood Country Club has the following inverse demand for rounds of golf at the
points The typical golfer at Bushwood Country Club has the following inverse demand for rounds of golf at the club per year: P Q For every round of golf played, Bushwood incurs a marginal cost of $
Judge Smails, the club president, wants to charge a single monopoly price for each round of golf at Bushwood. How many rounds of golf will the typical golfer play and what is the price per round? How much profit will the club obtain from a typical golfer?
Danny Noonan, the clubs top caddy, believes he has a better idea. He suggests a twopart pricing system that includes a membership fee and a fee for each round of golf played. What should the membership fee and per round fee be How many rounds of golf will the typical golfer play? What is the clubs profit from each golfer now?
If golfers vary in their demand for golf from the typical golfer, how will that make Danny Noonans idea less effective?
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