p=200-2q, re q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiate arately with each person who joins the club and can therefore charge individual prices. This manager has of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee as many rounds as he wants at $20, which is the marginal cost his round imposes on the Club. What mbership fee would maximize profit for the Club? The manager could have charged Joe a single price per vw much extra profit does the Club earn by using two-part pricing? profit-maximizing membership fee (Elis (Enter your response as a whole number..
p=200-2q, re q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiate arately with each person who joins the club and can therefore charge individual prices. This manager has of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee as many rounds as he wants at $20, which is the marginal cost his round imposes on the Club. What mbership fee would maximize profit for the Club? The manager could have charged Joe a single price per vw much extra profit does the Club earn by using two-part pricing? profit-maximizing membership fee (Elis (Enter your response as a whole number..
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.4P
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2
![Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function
is
p=200-2q,
where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates
separately with each person who joins the club and can therefore charge individual prices. This manager has a good
idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can
play as many rounds as he wants at $20, which is the marginal cost his round imposes on the Club. What
membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round.
How much extra profit does the Club earn by using two-part pricing?
The profit-maximizing membership fee (F) is $. (Enter your response as a whole number.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c333679-ad02-4458-92fd-1d30deb8645a%2Fd987f615-c863-4e8f-9e92-c0cd6bd40c7c%2F34gm64x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function
is
p=200-2q,
where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates
separately with each person who joins the club and can therefore charge individual prices. This manager has a good
idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can
play as many rounds as he wants at $20, which is the marginal cost his round imposes on the Club. What
membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round.
How much extra profit does the Club earn by using two-part pricing?
The profit-maximizing membership fee (F) is $. (Enter your response as a whole number.)
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