Many golf courses charge members an annual membership fee as well as a fee each time they golf.One reason for this is
A)golf courses do not want their members to overuse their fairways. Charging for each round of golf played reduces fairway maintenance costs.
B)charging both fees allows the courses to transfer more consumer surplus into profit than charging only a fee per round of golf.
C)charging both fees allows the courses to transfer more producer surplus into profit than charging only a fee per round of golf.
D)research has shown that charging both fees increases the likelihood that golfers will renew their memberships.

Question

Quizplus · Accepted Answer

Charging both an annual membership fee and a fee per round of golf played allows the golf course to capture more consumer surplus by charging members who golf frequently a higher total price than those who do not golf as frequently. This increases the profit for the golf course.

Many Golf Courses Charge Members an Annual Membership Fee as Well