Suppose the total monthly demand for golf services is Q = 20 − P. The marginal cost to the firm of each round is $1. If this demand function is based on the individual demands of 10 golfers, what is the optimal two-part pricing strategy for this golf services firm? How much profit will the firm earn?

A new restaurant – Uovo – has just opened in West L.A. It is serving the upscale market, with truly outstanding pasta that is flown in overnight from Bologna, Italy. Uovo offers a fixed-price menu with appetizer, three dishes of pasta, and a delicious tiramisu for dessert. The restaurant faces the following demand function: Q = 600 - 4P where Q is the number of guests per day. The marginal cost is constant at $50 per customer (including expenses for ingredients and personnel). The restaurant is paying a rent of $2,000 per day. What is the profit-maximizing number of guests that Uovo should serve each day, and what price should Uovo charge to maximize profit? What is the elasticity of demand at the optimal price and quantity? Is demand elastic or inelastic at this point? From what we learned in class, does it make sense for the restaurant to operate in this area of the demand curve (elastic/inelastic part)? What is the profit of the restaurant at the optimal price and quantity, and what…

A store estimates is customer inverse demand is P= 6.1 - 2.6Q, and the marginal cost of each rental is $0.48. If they use block pricing, what should the price be for the entire package?

Suppose Ring Dental is the single supplier at HRM region provide the dental service and has a market demand curve Q = 40 – P; A total cost curve given by the formula: T C = 80 - 20Q + 2Q2 Find the profit-maximizing quantity, price, and profit. Now, suppose Halifax Dental wishes to separate the market and target to two different groups of customers young and old customers, the average cost = marginal cost = 10 for both markets Young customers with elasticity = -5 and DA = 12000 - 65P Old customers with elasticity = -7 and DB = 12000 - 55P What is the profit if Halifax Dental sets the equal price for both markets? (use the average elasticity for equal price) What is the profit if Halifax Dental charges different prices for each market?