Prove the following claim: The optimal two-part tariff satisfies MR=MC- Hint: MR and MC are defined with respect to quantitysupplied/consumed Q.It may seem obvious that this general rule for an optimaloutput Q should apply here, but is the proof obvious?1 At the optimal uniform price, how did P* compare with MR?1 At the optimal two-part tariff, how does p* compare with MR?- Why the difference?

A Two-part tariff is defined as a tariff used to extract more of the consumer surplus with the help…

Answered: Prove the following claim: The optimal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Prove the following claim: The optimal two- part tariff satisfies MR=MC