What is the golf course''s profit if there are 100 golfers
Course:- Microeconomics
Reference No.:- EM13950450

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

Each identical consumer has the following demand for golf, q = 100-p, where q is the number of rounds of golf played per year and p is the price per round. The only golf course in an isolated town incurs a marginal cost of $10 per round of golf, which is equal to its average cost. It wishes to charge a membership fee and a fee per round of golf.

(a) What price will it set for the membership fee and for each round of golf? How many rounds of golf will each golfer play?

(b) What is the golf course's profit if there are 100 golfers?

(c) How does the golf course's profit per golfer in the above situation compare to the case in which the golf course is banned from charging a membership fee and can only charge a price per round of golf? Explain.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Why will a monopolist"s output increase if the government forces it to lower its price? If the government wants to set a price ceiling that maximizes the monopolist"s output,
What factors determine the elasticity of industry’s labor demand curve? Based on these factors, discuss labor demand for factory line workers versus labor demand for nurses, w
The net accounts receivable balance is comprised of the following three items: (a) accounts receivable-debit balances $55,590; (b) accounts receivable-credit balances $8,000
Guthrie Enterprises needs someone to supply it with 230,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decide
Supposed that the government responds to complaints about adecrease in real wages as a result of immigration by legislating aminimum real wage that is equal to the real wage
Find the reaction functionB)How much does each firm produceC)compute CS ,PS and the deadweight lossD)if firm 1 and 2 leaders and 3 follower (Stackelberg),What are the quantity
What are the factors of production? Please list them and share your thoughts and insight on what they entail and how they relate to the opportunity costs of your decisions?
Presume than an oligopolist is charging $21 per unit of output and selling 31 units each day. Also presume that previously it had lowered its price from $21 to $19, rivals mat