Question: Suppose that a golf - course operator observers that the demand for tee times is different during the week than during the weekend. The weekly
Suppose that a golfcourse operator observers that the demand for tee times is different during the week than during the weekend. The weekly demand curve for each market segment is summarized below.
Segment : Weekday Golfers
Demand Curve: PQ
Marginal Revenue: MRQ
where P Segment weekday golfer price
Q Segment weekday golfer quantity demanded per week
Segment : Weekend Golfers
Demand Curve: PQ
Marginal Revenue: MRQ
where P Segment weekend golfer price
Q Segment weekend golfer quantity demanded per week
If the market was not segmented, the weekly demand curve for the overall market would be:
Demand Curve:
Marginal Revenue:
where P price paid, regardless of day of week
Q quantity demanded per week
The total weekly cost of operating the golf course is TC QQ
points Suppose the golfcourse operator is able to segment the market, offering a separate weekday and weekend price. What is the optimal quantity of teetimes sold per week to Segment weekday golfers What is the optimal price that these customers should be charged? What is the optimal quantity of teetimes sold per week to Segment weekend golfers What is the optimal price that these customers should be charged? What is golfcourse operators weekly profit across the two market segments? Be sure to show your work, including all calculations and conditions used.
points Suppose the golfcourse operator does not separate the market into segments, charging a single price to all customers regardless of day of week. What is the optimal quantity of teetimes sold per week? What is the optimal price in the overall or unsegmented market? What is the golfcourse operators associated weekly profit? Be sure to show your work, including all calculations and conditions used.
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