Answer Questions Based on the Following Situation:
Black

question 49

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
$$\begin{array} { | l | l | l | } \hline \text { Typeaf family } & \begin{array} { l } \text { Tennis } \\\text { membership anly }\end{array} & \begin{array} { l } \text { Galf membership } \\\text { anly }\end{array} \\\hline \text { Tennis-ariented } & \$ 150 & \$ 50 \\\hline \text { Galf-ariented } & \$ 75 & \$ 200 \\\hline\end{array}$$
-What is the optimal price to charge for a bundled tennis and golf and tennis membership?

• A) $150
• B) $200
• C) $225
• D) $250
• E) $275

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Definitions:

Advanced Economy

A term used to describe countries with a high level of income per capita and industrial development, along with a high Human Development Index (HDI).

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

United Kingdom

A nation with sovereignty positioned to the northwest of mainland Europe, consisting of England, Scotland, Wales, and Northern Ireland.

Real GDP

Gross Domestic Product adjusted for inflation, providing a measure of the value of goods and services produced in a country using constant prices.