Question: hi can someone help me on this question? Question 3 two-part tariffs: You are opening a tennis club in an isolated community. There are two

hi can someone help me on this question?

hi can someone help me on this question? Question 3 two-part tariffs:

Question 3 two-part tariffs: You are opening a tennis club in an isolated community. There are two types of tennis players in this community. Frequent players ("Gustavos") have demand Qa=3P where Q is court hours per month and P is the fee per hour for each player. The second group is occasional players ("lmkes\"). Their demand is Q, = 3 0.25.0. Assume that there are 100 players of each type, and assume that the marginal cost of court time is zero (because you have plenty of courts). You have fixed costs of $1,000 per month. You want to figure out the optimal membership dues and hourly fees for court time. a) Suppose that to maintain a "professional\" atmosphere, you want to limit membership to Gustayos you don't want any lmkes to join. (1) How should you set the hourly court fees and monthly membership dues to maximize your profit? (2) What would monthly profits be for your club? b) Now suppose you realize lmkes are actually great tennis players, and quite professional they just don't need to practice as much as Gustavos. You consider encouraging both types to join the club by offering a single two-part tariff for all players. (1) What is your optimal per-unit price (hourly court fee) if you want to reach both types of consumers? (2) What should your monthly membership dues be? (3) What would monthly profits be now

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