Using the data in Exercise 1, determine the profit maximizing the quantity discount scheme in which all units up to a point sell for a high price, and all remaining units sell for a low price.
Exercise
You own a small country club. You have three types of customers who value each round of golf they play during a month as shown in the following table:
|
Round
|
Segment 1
|
Segment 2
|
Segment 3
|
|
1
|
$60
|
$60
|
$40
|
|
2
|
$50
|
$45
|
$30
|
|
3
|
$40
|
$30
|
$20
|
|
4
|
$30
|
$15
|
$10
|
|
5
|
$20
|
$0
|
$0
|
|
6
|
$10
|
$0
|
$0
|
It costs you $5 in variable costs to provide a customer with a round of golf. Find a profit maximizing a two-part tariff. Each market segment is of equal size.