Find what prices should firm charge to the two members

Reference no: EM13238568

A private golf club has two types of members. Serious golfers each have a demand curve Q = 350 - P, where Q represents the number of rounds played per year and P is price per round. Causal golfers have the demand curve Q = 100 - 10P. The club has 10 serious golfers and 100 casual golfing members and faces a constant marginal cost of $5 per round played by either type of member. If the club can engage in third-degree price discrimination, what prices should it charge to the two members?

Reference no: EM13238568

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