Posted by Rai on Friday, April 25, 2008 at 7:34pm.
A golfcourse operator must decide what greens fees (prices) to set on rounds of golf. Daily demand during the week is Pd = 36 –Qd/10 where Qd is the number of 18 hole rounds and Pd is the price per round. Daily demand on the weekend is Pw = 50 – Qw/12. As a practical matter, the capacity of the course is 240 rounds per day. Wear and tear on the golf course is negligible.
a) Can the operator profit by charging different prices during the week and on the weekend? What greens fee should the operator set on weekdays and how many rounds will be played on the weekend?
b) When weekend prices skyrocket, some weekend golfers choose to play during the week instead. The greater the difference between weekday and weekend prices; the greater are the number of these defectors. How might this factor affect the operator’s pricing policy
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices.

managerial economics  Anonymous, Friday, April 25, 2008 at 10:04pm
The problem doesn't state what Pw is, so assuming that is the price per round on the weekend, then:
weekend profit = Pw x Qw
daily profit = Pd x Qd
Take the 1st derivative of each of these, set equal to zero, and solve for the maximum value of the profit.
Answer This Question
Related Questions
 Managerial EconomicsHELP!!  Pappa's Restaurant is a new Italian Restaurant in...
 Algebra  A golf resort offers the following two special packages. The Par 3 ...
 algebra II  Leona was in a golf tournament last week. All of her four rounds of...
 Math  A golf tournament is five rounds. Katie shot 1 in two rounds, 2 on one ...
 Elementary math for teachers  Scoring in Golf. A golfer played 8 rounds on a ...
 algebra  Tom played five rounds of golf and shot an average score of 72. If he ...
 math  Write the integer that is represented by a point midway between 76 and ...
 Math  Round the larger factor to the graetest place. 55*4 round 50 *4 993*6 ...
 Data Management  Emilio has played ten rounds of golf this season. His mean ...
 Math Help  The number y of daily fee golf facilities in the United States from ...
More Related Questions