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Refer to the Figures Above

Question 117

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  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,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. The monopolist should set MC = MR in both markets.That means the weekday output should be 200 per day with a price of $7 and the weekend output should be 100 per day with a price of $10. 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,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.
The monopolist should set MC = MR in both markets.That means the weekday output should be 200 per day with a price of $7 and the weekend output should be 100 per day with a price of $10.

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