Mapleville Tennis & Golf Club offers golf and tennis memberships to the resident
ID: 1234896 • Letter: M
Question
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?
Question 2 answers
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.
Explanation / Answer
Charge $150 for tennis memberships and $200 for golf memberships Anything else would make you lose money. Good luck :)