Post a New Question

managerial economics

posted by .

A golf-course 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 -

    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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Managerial Economics--HELP!!

    Pappa's Restaurant is a new Italian Restaurant in town. As the only Italian restaurant in the area, it faces the following daily demand curve: Q = 500 – 25 P Where Q is the number of meals it serves per day and P is the average price …
  2. Elementary math for teachers

    Scoring in Golf. A golfer played 8 rounds on a tournament course with the following scores (par is the expected score for a round; negative numbers represent the number of strokes under par for the round, and positive numbers represent …
  3. algebra II

    Leona was in a golf tournament last week. All of her four rounds of golf were within 2 strokes of par. If par was 72, wat are the maximum and minimum scores that Leona could have made in the golf tournament?
  4. math

    Write the integer that is represented by a point midway between -76 and 76 on the number line. Choose a nonzero integer for n to show that –n can be evaluated as a positive number. Scoring in Golf. A golfer played 8 rounds on a tournament …
  5. algebra

    Tom played five rounds of golf and shot an average score of 72. If he excluded the lowest score, however, his average for the other four rounds was 74. what was Tom's lowest score in the five rounds?
  6. Math

    A golf tournament is five rounds. Katie shot -1 in two rounds, -2 on one round, and +1 on the other two rounds. The winning score was five under par. What was Katie's final score?
  7. Algebra

    A golf resort offers the following two special packages. The Par 3 Package includes four nights of lodging and three rounds of golf for $443.50. The Par 5 Package includes seven night of lodging and five rounds of golf for $765.50. …
  8. Data Management

    Emilio has played ten rounds of golf this season. His mean score is 80 and standard deviation is 4. Assume Emilio's golf scores are normally distributed. a) Find the 95% confidence interval of Emilio's mean golf score b)Find the 95% …
  9. Math Help

    The number y of daily fee golf facilities in the United States from 1995 to 2003 can be represented by the following model where t represents the year with t = 5 corresponding to 1995. y=4381+1883.6lnt 5=t=13 During which year did …
  10. Math

    Round the larger factor to the graetest place. 55*4 round 50 *4 993*6 rounds to 1,000*6 735*3 rounds to 700*3 1,914*3 rounds to 2,000*3 4,722*6 rounds to 5,000 495*3 rounds to 500*3 Please ,, My answers : true or false

More Similar Questions

Post a New Question