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 golf-course 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 1: Weekday Golfers
Demand Curve: P1=120-Q1
Marginal Revenue: MR1=120-2Q1
where P1= Segment 1(weekday golfer) price
Q1= Segment 1(weekday golfer) quantity demanded per week
Segment 2: Weekend Golfers
Demand Curve: P2=200-2Q2
Marginal Revenue: MR2=200-4Q2
where P2= Segment 2(weekend golfer) price
Q2= Segment 2(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 =1,500+4Q1+4Q2
3.(8 points) Suppose the golf-course operator is able to segment the market, offering a separate weekday and weekend price. What is the optimal quantity of tee-times sold per week to Segment 1(weekday golfers)? What is the optimal price that these customers should be charged? What is the optimal quantity of tee-times sold per week to Segment 2(weekend golfers)? What is the optimal price that these customers should be charged? What is golf-course operators weekly profit across the two market segments? Be sure to show your work, including all calculations and conditions used.
4.(4 points) Suppose the golf-course 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 tee-times sold per week? What is the optimal price in the overall (or un-segmented) market? What is the golf-course operators associated weekly profit? Be sure to show your work, including all calculations and conditions used.

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