Calculate and explain the two-part pricing strategy

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You have just been hired as manager of a new golf club. The golf club has market power over its members. The club owner wants you to come up with a two-part pricing strategy to maximize profits for the club. The average golfer’s monthly demand is P = 240 – 8Q. The cost of operating is C(Q) = 10Q, where Q is the number of rounds played in a month. Calculate and explain the two-part pricing strategy you will use to maximize profit.

Reference no: EM13982610

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