What is the golf course''s profit if there are 100 golfers

Assignment Help Microeconomics

Reference no: EM13950450

Each identical consumer has the following demand for golf, q = 100-p, where q is the number of rounds of golf played per year and p is the price per round. The only golf course in an isolated town incurs a marginal cost of $10 per round of golf, which is equal to its average cost. It wishes to charge a membership fee and a fee per round of golf.

(a) What price will it set for the membership fee and for each round of golf? How many rounds of golf will each golfer play?

(b) What is the golf course's profit if there are 100 golfers?

(c) How does the golf course's profit per golfer in the above situation compare to the case in which the golf course is banned from charging a membership fee and can only charge a price per round of golf? Explain.

Reference no: EM13950450

Questions Cloud

Explain that decrease in price level leads to in real wages : Since nominal wages fell by the same percentage as the price level, you explain that a decrease in the price level leads to (no change, a decrease, or an increase) in real wages. This, in turn, leads to which of the following? Firms hire more work..

Why the estate was not subject to any federal estate tax : Explain why the estate was not subject to any federal estate tax. Assuming that the above information describes the activities of the estate and that all provisions of the decedent's will have been carried out.

What is jackel charitable contribution deduction : What is Jackel's taxable income? What is Jackel's charitable contribution deduction?

Create the preliminary database tables for the sales contact : create the preliminary database tables for the sales contact system from above Question. Be sure to include field type and size. Indicate what fields you believe will be primary keys, foreign keys, and indexes.

What is the golf course''s profit if there are 100 golfers : How does the golf course's profit per golfer in the above situation compare to the case in which the golf course is banned from charging a membership fee and can only charge a price per round of golf? Explain.

Prepare journal entries to record each of the given events : Prepare journal entries to record each of these events. Use the straight-line method of amortization where applicable.

Work out an acceptable solution to a problem : In trying to work out an acceptable solution to a problem, managers who rely on their understanding of other people and who empathize with others' feelings are using which managerial skill according to Katz?

Create a switchboard for your database : Do not use the Main Switchboard page that is provided for you, but rather create a new Switchboard named with your first name and the word Switchboard. (For example, mine is called Janis Switchboard.)

Determine effects of an increase in z on output, consumption : Suppose that total factor productivity, z, affects the productivity of government production just as it affects private production. That is, suppose that when the government collects taxes, it acquires goods that are then turned into government- p..

User Account

All Pages