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
It wishes to charge a membership fee and a fee per round of golf. What price will it set for each fee?
At a price of $10, consumer surplus is $4,050. The firm maximizes profit by setting the annual fee equal to $4,050 and charging a $10 per round fee.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The amount of income that households keep after paying taxes is
A) personal income. B) personal disposable income. C) value added income. D) national income.
When comparing industries, a monopolistically competitive industry is less competitive than an oligopoly.
Answer the following statement true (T) or false (F)
The Leontief production function:
A. is Q = max{bK, cL}. B. is Q = aK + bL. C. implies inputs are used in fixed proportions. D. implies inputs are used in variable proportions.