Demand Function Consumer A : qA = 4 - p Consumer B : qB = 2-1/2 p Marginal cost : mc=c Two-part tariff : T=k+pq 1. Find the condition of k that only consumer A can purchase. 2. Find the condition of k that both consumers A and B can purchase.

Demand Function Consumer A : qA = 4 - p Consumer B : qB = 2-1/2 p Marginal cost : mc=c Two-part tariff : T=k+pq 1. Find the condition of k that only consumer A can purchase. 2. Find the condition of k that both consumers A and B can purchase.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.3IP

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