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Creative pricing strategy for memberships

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Many country clubs and professional sports teams use a creative pricing strategy for memberships in the case of country clubs or seating in the case of professional sports. For example, the Country Club of York, in York, PA, charges members a one-time initiation fee of $22,500 and then charges monthly dues of $400. For top of the line season tickets at M&T Bank Stadium, the Baltimore Ravens charge fans a one-time fee of $8,000 for a personal seat license and then $1,250 per game. How do pricing structures like these relate to the concept of consumer surplus?

Reference no: EM132027344

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