It costs you 5 in variable costs to provide a customer with


You own a small country club. You have three types of customers who value each round of golf they play during a month as shown in the following table:

Round

Segment 1

Segment 2

Segment 3

1

$60

$60

$40

2

$50

$45

$30

3

$40

$30

$20

4

$30

$15

$10

5

$20

$0

$0

6

$10

$0

$0


It costs you $5 in variable costs to provide a customer with a round of golf. Find a profit maximizing a two-part tariff. Each market segment is of equal size.

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Business Management: It costs you 5 in variable costs to provide a customer with
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