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At Silverado Golf Club, the demand for rounds of golf by each one of the 140 identical senior golf members is given by D SR in the figure below.

At Silverado Golf Club, the demand for rounds of golf by each one of the 140 identical senior golf members is given by DSRin the figure below. Silverado's annual fixed costs are $1,250,000, and variable costs are constant and equal to $25 per round.




  • If the manager of Silverado charges a uniform green fee to all senior golfers, the profit-maximizing green fee is $________ per round. Under this uniform pric­ing plan, Silverado's annual total revenue is $________ and total variable cost is $________. Silverado's profit under uniform pricing is $________ per year.
  • If the manager instead decides to employ a two-part pricing plan, the profit-maximizing green fee is $________ per round, and the annual membership charge is $________. The two-part pricing plan results in total annual profit of $________.
  • Which pricing plan—uniform pricing or two-part pricing—generates more profit for Silverado's owner? Is this the pricing plan you expected to be more profitable? Why or why not?

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