Microeconomic Question. Please Help Refer to the figure above. Suppose the graph
ID: 1095515 • Letter: M
Question
Microeconomic Question. Please Help
Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf. Q is the quantity of rounds sold each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit -maximizing golf course should charge $ .for each round on weekdays, and $ during the weekend. (I point) 2. Refer to the figure above. If the left graph represents the demand during weekdays, and the right graph the weekend demand, then over the course of a full seven-day week this price -discriminating, profit -maximizing golf course should sell at total of rounds (2 points) 3 Refer to the figure above. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit -maximizing golf course will earn how much economic profit over the course of a full seven-day week? It will earn a profit of (2 points)Explanation / Answer
1. profit maximisation output
MR=MC
Weekdays price = $7
Weekend price =$10
2.
Price discrimanating to profit maximisation output
Weekdays Q =5*200=1000
Weekend Q = 100*2 =200
Total round =1200
3.
Weekdays
ATC= 4 , Total cost = 1000*4=4000
Price = 7, revenue = 1000*7 = 7000
Profit = revenue-cost = 3000
Weekend
ATC= 4, Total cost = 200*4= 800
Price = 10, revenue = 200*10 = 2000
Profit = 1200
Total profit over week = 1200+3000 = 4200