Problems

Both problems refer to the following situation: You own a small country club and have three types of customers who value each round of golf they play during a month, as shown in Figure 73-6.

Figure 73-6: Data for golf problem

1. Find a profit-maximizing two-part tariff.

2. Suppose you are going to offer a pure bundle. For example, a member can play up to five rounds of golf for $60 per month. The member has no other option to choose from other than the pure bundle. What pure bundle maximizes your profit?