The Graphs Represent the Demand for Use of a Local

question 217

Multiple Choice

The graphs represent the demand for use of a local golf course for which there is no significant competition. (It has a local monopoly.) P denotes the price of a round of golf, and Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays and the right graph the weekend demand, this profit-maximizing golf course should

• A)charge $9 for each round, regardless of the day of the week.
• B)charge $7 for each round, regardless of the day of the week.
• C)charge $7 for each round on weekdays and $10 during the weekend.
• D)charge $9 for each round on weekdays and $10 during the weekend.

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Definitions:

Big Data

Refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Price Discriminate

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different customers.

Personalized Pricing

A pricing strategy where prices are set for individual customers based on their perceived willingness to pay, often using data analytics.

Barriers to Entry

Factors that prevent or impede the ability of a new competitor to enter and operate in an industry.