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 an admission fee.
C)charging both fees allows the courses to transfer more producer surplus into profit than charging only an admission fee.
D)research has shown that charging both fees increases the likelihood that golfers will renew their memberships.

Question

Quizplus · Accepted Answer

Charging both a membership fee and a fee for each round of golf played allows the golf course to capture both consumer surplus (the difference between what a golfer is willing to pay and the actual price they pay) and producer surplus (the difference between the cost of producing a round of golf and the price charged). By capturing both surpluses, the golf course can maximize its profit. Additionally, research has shown that bundling fees together can increase the perceived value of the membership, which can lead to higher renewal rates. Charging for each round of golf also incentivizes members to play more frequently, which can help offset the cost of maintaining the course.

Many Golf Courses Charge Members an Annual Membership Fee as Well