Multiple Choice
Answer Questions based on the following situation:
Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-oriented families in Black Diamond. Forecasted demand prices for golf and tennis memberships by family type are given below. There is no way to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit.
Demand Prices for Golf and Tennis Memberships
-If Black Diamond Tennis & Golf Club plans to offer golf and tennis memberships separately, what prices should be charged for each kind of membership if Berkely wishes to maximize profit?
A) Charge $75 for tennis memberships and $50 for golf memberships.
B) Charge $75 for tennis memberships and $200 for golf memberships.
C) Charge $150 for tennis memberships and $200 for golf memberships.
D) Charge $150 for tennis memberships and $50 for golf memberships.
E) either b or c
Correct Answer:

Verified
Correct Answer:
Verified
Q10: To successfully practice price discrimination<br>A)the firm must
Q23: Refer to the following:<br>A news magazine offers
Q24: Relate to the following:<br>A firm is
Q25: In Questions a firm sells its
Q26: Using the following information:<br>Drill Quest, Inc.
Q27: In Questions a firm sells its
Q29: Refer to the following:<br> <span
Q30: To maximize profit a price discriminating firm
Q31: In Questions a firm sells its
Q33: Refer to the following:<br> <span