(Table: Myrtle Beach Golf) Refer to the table. Assume the firm has zerocosts. If the resort sets prices for lodging and golf individually, it willcharge ________ for one night's stay and ________ for one round of golf.

Question

Quizplus · Accepted Answer

From the table, we can see that the optimal price for lodging and golf is achieved when they are bundled together for $190. If they are sold individually, the optimal price for one night's stay is $110 (same as the bundled price for lodging plus golf minus the cost of one round of golf) and the optimal price for one round of golf is $80 (same as the bundled price for lodging plus golf minus the cost of one night's stay). Therefore, the correct choice is B, as it matches these individual prices.

(Table: Myrtle Beach Golf) Refer to the Table