(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.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter16: Government Regulation
Section: Chapter Questions
Problem 1E
Related questions
Question
Typed plz please solve in brief each and every step and also take care of plagiarism
Transcribed Image Text:(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.
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