Assume a firm faces two customers in the market. Customer 1 has an inverse demand of p= 120 - 91. and Customer 2 has an inverse demand of p= 180 – 42. Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee charged to these two customers. For the following questions, assume the firm will always sell to both customers. The profit-maximizing price is S (Enter a numeric response using a real number rounded to two decimal places.) The lump-sum fee is $ (Enter a numeric response rounded to the nearest penny.)
Assume a firm faces two customers in the market. Customer 1 has an inverse demand of p= 120 - 91. and Customer 2 has an inverse demand of p= 180 – 42. Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee charged to these two customers. For the following questions, assume the firm will always sell to both customers. The profit-maximizing price is S (Enter a numeric response using a real number rounded to two decimal places.) The lump-sum fee is $ (Enter a numeric response rounded to the nearest penny.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Assume a firm faces two customers in the market. Customer 1 has an inverse demand of
p= 120 - 91,
and Customer 2 has an inverse demand of
p= 180 – 92.
Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee
charged to these two customers.
For the following questions, assume the firm will always sell to both customers.
The profit-maximizing price is S
(Enter a numeric response using a real number rounded to two decimal places.)
The lump-sum fee is $
(Enter a numeric response rounded to the nearest penny.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F059a3493-8efd-46d9-b597-5fb7b8eb9653%2F7799dd68-52fa-44ff-ae49-279c2790effc%2Fr2cqqg_processed.png&w=3840&q=75)
Transcribed Image Text:Assume a firm faces two customers in the market. Customer 1 has an inverse demand of
p= 120 - 91,
and Customer 2 has an inverse demand of
p= 180 – 92.
Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee
charged to these two customers.
For the following questions, assume the firm will always sell to both customers.
The profit-maximizing price is S
(Enter a numeric response using a real number rounded to two decimal places.)
The lump-sum fee is $
(Enter a numeric response rounded to the nearest penny.)
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