Suppose that all individuals' demand for rounds of golf at a private club is given by:
Q=150−P,
where P is the price per round (the greens fee) and Q is the number of rounds.
The marginal revenue is:
MR=150−2Q.
The marginal cost is constant at $40, and there is no fixed cost.
The single price that maximizes a monopolist's profit is $____.
Under two-part pricing, the firm's profit-maximizing price is $____ and the profit-maximizing quantity is ____ rounds of golf.
What would the terms be in an all-or-nothing offer?
A.The all-or-nothing offer would be 110 rounds priced at $95 per round.
B.The all-or-nothing offer would be 55 rounds priced at $40 per round.
C.The all-or-nothing offer would be 55 rounds priced at $95 per round.
D.The all-or-nothing offer would be 110 rounds priced at $40 per round.
The economic profit of the firm when it charges a single price is $____.
The economic profit of the firm when it engages into two-part pricing is $____.
The economic profit of the firm when it gives an all-or-nothing offer to its customers is $____.
Suppose that all individuals' demand for rounds of golf at a private club is given by: Q=150−P...
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