b. The greens manager has difficulty telling frequent from infrequent golfers, so she decides to use second-degree price discrimination (quantity discounts) to make different types of golfers self-select into the most profitable pricing scheme. The course sets a price for individual rounds of golf but also offers a quantity discount for members willing to buy a large quantity of rounds in advance. The course's owners hope that frequent golfers will self-select into the discounted plan and that infrequent golfers will choose to buy individual rounds. What price (Pregular) should the golf course set for individual rounds of golf, and what price (P discounted) should it set for the discounted plan? Pregular = $ Pdiscounted = $ To maximize profit, the golf course should set a minimum quantity for the discounted plan of rounds of golf. 4 5 c. Frequent golfers therefore self-select self-select d. Infrequent golfers theref 9 the discounted plan. the discounted plan. will will not e. With the quantity discount plan, the owners earn just as much profit as they would if each type of golfer came to the course with the word "frequent" or "infrequent" tattooed on his or her forehead. false true
