Measuring the areas of surplus on frequent golfers

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A local golf course's hired-gun econometrician has determined that there are two types of golfers, frequent and infrequent. Frequent golfers' annual demand for rounds of golf is given by Q f = 24 - 0.3P, where P is the price of a round of golf. In contrast, infrequent golfers' annual demand for rounds of golf is given by Q i = 10 - 0.1P. The marginal and average total cost of providing a round of golf is $20.

Which plan will generate the greatest consumer surplus for frequent golfers, the individual-round plan or the discount plan? Illustrate your answer by showing. and measuring the areas of surplus on frequent golfers' inverse demand curves.

Reference no: EM132445479

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