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Two additional multiple choice questions for $25 by 6/1/13 or 6/2/13
Mapleville Tennis & Golf Club offers golf and tennis memberships to the residents of Mapleville. Market research has found there are two types of families living in the city: 120 golf-oriented families and 100 tennis-oriented families. Information on the demand prices for golf and tennis memberships by family type is given below. It is not possible to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit.
|
Type of family |
Tennis membership only |
Golf membership only |
|
Tennis-oriented |
$150 |
$50 |
|
Golf-oriented |
$75 |
$200 |
If Mapleville Tennis & Golf Club plans to offer golf and tennis memberships separately, what prices should be charged for each kind of membership it wishes to maximize profit?
Answer
|
Charge $75 for tennis memberships and $200 for golf memberships. |
|
Charge $75 for tennis memberships and $50 for golf memberships. |
|
Charge $150 for tennis memberships and $200 for golf memberships. |
|
Charge $150 for tennis memberships and $50 for golf memberships. |
Assume an automobile manufacturer can sell its pickup truck with or without a towing package. Customer Group A is willing to pay a maximum of $30,000 for the truck and $1,100 for the towing package. Customer Group B is willing to pay $29,000 for the SUV and $1,000 for the towing package. Assuming the manufacturer cannot price discriminate but can bundle the products or sell them separate, which of the options below maximizes its revenues?
Answer
|
Sell the components as a bundle for $30,500. |
|
Sell the components separately, charging $30,000 for the SUV and $1,000 for the towing package. |
|
Sell the components separately, charging $29,000 for the SUV and $1,100 for the towing package. |
|
Sell the components separately, charging $29,000 for the SUV and $1,000 for the towing package. |
