Refer to the Figures Above

question 104

Multiple Choice

Refer to the figures above.Suppose 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,then over the course of a full seven-day week this price-discriminating,profit-maximizing golf course should sell a total of:

• A) 300 rounds.
• B) 740 rounds.
• C) 900 rounds.
• D) 1200 rounds. The monopolist should set MC = MR in both markets.That means the weekday output should be 200 with a price of $7 and the weekend output should be 100 with a price of $10.This means 5 days of 100 rounds each and 200 weekend rounds for a total of 1200.

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Definitions:

Vertical Chart Axis

The y-axis in a chart or graph that typically represents the range of values for a particular variable or dimension.

Positioned Vertically

Oriented in an up-down direction or alignment, as opposed to horizontally.

Axis Titles

Descriptive labels used in charts or graphs to identify the different axes, usually the x-axis (horizontal) and y-axis (vertical).

Interpret

The act of explaining or determining the meaning of something, often used in the context of data analysis or language translation.