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Suppoe the monthly demand for golf ervice at a golf club i given by the invere demand function, P = 20 – Q. The marginal cot to the golf club for each round i €2. There are 10 cutomer with exactly the ame invere demand function. The fixed cot of running the club are €500 a month. At the moment the golf club charge each peron €11 per round and each peron play 9 round of golf a week. The entry fee that the club hould charge each player under an optimal two-part tariff i A. 4 B. 2 C. 162 D. 324

Respuesta :

The entry fee that the club should charge each player under an optimal two-part tariff is $ 4.5.

According to the question,

   P = 20- Q

⇒ 11 = 20 - Q

⇒ Q = 9

CSₐ = (20 -11) (9 -0) / 2

      = 9 × 9 /2

      = 40.5

Cs = CSₐ / 9

     = 40.5 /9

     = 4.5

The entry fee that the club should charge each player under an optimal two-part tariff is $ 4.5.

The correct answer would be $ 4.5.

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