If the golfers at Green Golf have nonidentical demands, the profit- maximizing user fee is______ Green Golf's marginal cost.
A)equal to
B)greater than
C)one- half of
D)less than

Question

Quizplus · Accepted Answer

When golfers have nonidentical demands, the profit-maximizing user fee is greater than the marginal cost. This is because the golf course can charge higher prices to those with a higher willingness to pay, thus maximizing profits beyond just covering marginal costs.

If the Golfers at Green Golf Have Nonidentical Demands, the Profit-