(d) Now suppose that the producer cannot see the identity of consumers and therefore cannot offer personalized prices. The producer can still use non-linear pricing and offer two two-part tariffs (Tg, Pg) and (To, Po), but now the producer must allow each consumer to choose from these two offers. Find the profit - maximizing two-part tariffs (IG, PG) and ( To, Po) in this case. Show your work. (e) Now suppose that the cost of producing a vacuum cleaner is 250 instead of 100. The producer still cannot see the identity of consumers. Find the profit - maximizing two-part tariffs (Tg, PG) and ( To, Po) in this case. Show your work.

(d) Now suppose that the producer cannot see the identity of consumers and therefore cannot offer personalized prices. The producer can still use non-linear pricing and offer two two-part tariffs (Tg, Pg) and (To, Po), but now the producer must allow each consumer to choose from these two offers. Find the profit - maximizing two-part tariffs (IG, PG) and ( To, Po) in this case. Show your work. (e) Now suppose that the cost of producing a vacuum cleaner is 250 instead of 100. The producer still cannot see the identity of consumers. Find the profit - maximizing two-part tariffs (Tg, PG) and ( To, Po) in this case. Show your work.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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